Ninth Circuit rejects Meta’s Section 230 immunity claim, paving way for $1.4 trillion state trial

The US Court of Appeals for the Ninth Circuit has ruled that Section 230 of the Communications Decency Act provides a defence to liability rather than immunity from suit, allowing a $1.4 trillion lawsuit brought by state attorneys general against Meta to proceed to trial. In a unanimous 3-0 decision, the court rejected Meta’s argument that the federal statute granted the social media giant blanket protection from litigation, effectively clearing the path for jury selection to begin on 12 August.

The ruling addresses a consolidated case involving consumer protection claims brought by the attorneys general of California, Colorado, Kentucky, and New Jersey. Meta had sought to dismiss the claims entirely by asserting that Section 230 conferred absolute immunity from suit, a position the judges rejected. The court determined that while the law limits liability for online platforms hosting third-party content, Congress did not explicitly guarantee that companies would be shielded from the litigation process itself.

Meta’s emergency motion to stay the trial pending the resolution of its appeal was denied as moot. The judges noted that because Section 230 does not provide immunity from suit, the district court’s denial of the defence could be effectively reviewed on appeal from a final judgment. Consequently, the appellate court lacked jurisdiction to review the district court’s interlocutory rulings at this stage, a stance that aligns with previous analysis by the Tenth Circuit.

In a July court filing, Meta indicated that the damages demanded by the state attorneys general would amount to more than $1.4 trillion. State attorneys general responded to these concerns in a subsequent filing, stating that Meta’s apprehension regarding the size of the requested remedies rang hollow given the evidence they intend to present. They argued that Meta deceived the public about platform safety while deliberately designing features to induce compulsive use and increase revenue.

The Ninth Circuit also addressed the involvement of TikTok, noting that the platform’s entities had not independently briefed any issues and merely joined Meta’s arguments. The decision serves as a significant development in multidistrict litigation involving thousands of lawsuits alleging that social media platforms encourage addictive behaviour and fail to adequately safeguard minors. While Section 230 may insulate the design and deployment of certain features, the court’s ruling ensures that claims predicated on failure-to-warn and general platform construction can proceed to trial.