Meta Platforms reached a settlement agreement on Wednesday with a coalition of state attorneys general to resolve claims that the company designed Facebook and Instagram to addict children and misled the public about mental health harms.

The deal calls for Meta to pay up to $17 billion over 10 years, with the exact amount depending on whether other platforms adopt similar terms. California could receive between $1.5 billion and $2.1 billion, while Virginia is guaranteed $353 million and Connecticut up to $265.4 million.

The settlement, subject to court approval, ends a federal trial in Oakland that began last week and involved 29 states. It also resolves claims from additional states and territories, bringing the total number of participating attorneys general to around 51.

Under the terms, Meta must implement default daily time limits of two hours combined for Facebook and Instagram for users under 18, along with mandatory pauses during use. Nighttime blocks, enhanced parental controls, robust age verification, and an independent auditor to oversee compliance are also required.

Meta denied any wrongdoing in agreeing to the settlement. The company stated that the agreement includes a payment of approximately $18 billion distributed in annual installments.

State officials described the outcome as a significant step toward protecting young users. California Attorney General Rob Bonta said the settlement will make social media less dangerous for kids.

The case centered on allegations that Meta violated consumer protection laws and the federal Children's Online Privacy Protection Act by collecting data from minors without proper consent and using it in ways that harmed their well-being.

Stock in Meta rose in premarket trading following the announcement.