The 9th US Circuit Court of Appeals rejected an effort by Meta Platforms, Alphabet’s Google, ByteDance’s TikTok and Snap to overturn a lower court ruling that allows about 2,400 federal lawsuits to proceed, Reuters reported.
The companies had argued that Section 230 of the Communications Decency Act, a federal law that generally protects online platforms from liability for content posted by users, also shielded them from claims that they failed to warn about the potentially addictive nature of their products.
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The appeals court did not rule on the merits of that argument. Instead, the judges said the companies had brought their appeal too early because the lower court’s decision was not yet final.
The lawsuits, filed by parents, individuals, school districts, municipalities and states, accuse social media companies of intentionally designing their platforms to keep young users engaged and addicted. Plaintiffs say the alleged practices have contributed to rising levels of depression, anxiety and body-image problems among American youth.
The cases have been consolidated before US District Judge Yvonne Gonzalez Rogers in Oakland, California. Plaintiffs are seeking damages, penalties and restitution.
The companies are also facing thousands of similar lawsuits in state courts, including roughly 3,300 consolidated cases in California.
The legal battle could have major implications for the technology industry because it may ultimately determine whether Section 230 protects companies from claims involving the design and operation of their platforms, rather than simply content posted by users.
The issue has already produced significant courtroom setbacks for the companies.
In March, a Los Angeles jury found Meta and Google negligent for designing platforms that harmed young people and awarded $6 million to a woman who said she became addicted to Instagram and YouTube as a child. Both companies have denied the allegations and said they would appeal.
In a separate March case, Meta was ordered to pay $375 million to New Mexico after a jury found the company liable over allegations that it misled users about the safety of its platforms and enabled child sexual exploitation.
Meta and Google are expected to continue challenging the rulings, potentially setting up a broader legal fight over the limits of Section 230 and the responsibility of technology companies for how their platforms are designed.
