In short
The episode covers two legal-tech stories: (1) federal judges say the Trump administration is flouting court orders, and (2) a Meta trial over alleged harms to children from platform design and data practices.
Guests
Suzanne Moniak (Bloomberg Law reporter; researched compliance motions and statistics). Madeline Meckleberg (Bloomberg Law reporter; covers the Meta youth-safety trial).
Key claims
In court-compliance motions, judges found noncompliance in 14 of 25 preliminary-injunction enforcement instances. Examples include a March 2025 D.C. order to stop deportation flights of Venezuelan migrants to El Salvador prisons that wasn’t followed; a Voice of America case with a scathing opinion; and a Minnesota case where an ICE-related lawyer was briefly held in civil contempt after mishandling a release order.
Meta trial
29 state AGs sue Meta for consumer protection and children’s privacy violations (COPPA), seeking up to $1.4T (disputed; AGs estimate could be far lower, around $200B). Plaintiffs argue Meta’s “hook” design, misleading safety messaging, and data collection under age 13 drive addiction and mental-health harms.
Notable examples
planned testimony from Mark Zuckerberg/Adam Mosseri and whistleblower Arturo Behar; advisory jury verdict by Judge Yvonne Gonzalez Rogers; no direct testimony from children.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOCourt Compliance Issues
1:50 to 2:25
Explore how the Trump administration is reportedly not following court orders.
“The Trump administration is not following all court orders, and that's according to federal judges.”
Examples of Noncompliance
2:25 to 3:38
Discussion of specific cases where court orders were allegedly ignored by the administration.
“Now a study by Bloomberg Law shows that judges have found the administration has failed to comply with their orders in more than half of the 25 cases identified regarding preliminary injunctions.”
Judicial Reactions
3:38 to 4:42
Judges express frustration over the government's failure to comply with orders.
“against the administration telling them to stop doing something.”
Consequences of Noncompliance
4:42 to 5:51
Analyzing the implications of holding government officials in contempt for noncompliance.
“We've also seen plenty of orders where the judge is kind of very matter of factly is like, I don't see the government as having fully complied with this order.”
Government's Defense
5:51 to 7:03
The Justice Department's perspective on compliance issues and responsibility.
“overwhelmed, but the judge had ordered essentially a financial penalty for every day that the detained immigrant, you know, was not with his property.”
Impact on Legal Trust
7:03 to 8:17
Examining how these compliance issues affect the trust judges place in government lawyers.
“To what extent is the Justice Department responsible for a federal agency not fully following a court order or interpreting it too narrowly and, you know, not fully complying in the full spirit of the order?”
Staffing Challenges in the DOJ
8:17 to 13:06
Discussing the implications of staffing shortages on the Justice Department's performance.
“It's also partly a bit of a numbers game.”
Meta's Legal Battle Over Youth Safety
15:07 to 24:24
Explore the significant trial facing Meta over allegations of harming youth.
“It's the biggest legal fight yet over harm to youth from social media.”
The $1.4 Trillion Question
24:24 to 28:08
Unpack the implications of the staggering $1.4 trillion figure in Meta's trial.
“I think Meta's stance is that, you know, when we're talking about specific consumer protection violations, the number that's being floated is totally disproportionate to the allegations at issue.”
Understanding Meta's Legal Challenges
28:08 to 30:23
Learn about the financial implications and penalties Meta faces in ongoing trials.
“Meta has denied wrongdoing, saying it's continuously improved its tools to protect kids.”
Show all 14 chapters
Arturo Bejar's Testimony
30:23 to 32:56
Discover insights from the testimony of a key witness about Meta's practices.
“The accusation that Meta collected data from users under 13 in violation of the Children's Online Privacy Protection Act.”
The Bellwether Cases Explained
32:56 to 35:55
Explore the significance of bellwether cases in the ongoing litigation against social media companies.
“But it seems as if from hearing what the defense attorney said and from hearing the witnesses that their strategy appears to be the same.”
Global Regulatory Landscape
35:55 to 37:59
Examine the differences in regulatory approaches between the US, Europe, and Australia.
“Do these companies want to go to trial over and over and over against all these claims?”
Mark Zuckerberg's Potential Testimony
37:59 to 39:10
Find out about the implications of Mark Zuckerberg testifying in court.
“It always it brings out a really interesting side of them.”
Transcript
Automatic transcript. May contain errors.0:00So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal.
0:38Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart.
1:01Suzanne Monyak:What if the secret to better sleep is already on your wrist? Apollo Neuro uses gentle, silent vibrations to help calm your body for sleep. So you can fall asleep faster, sleep deeper, and wake up actually feeling rested. This isn't just tracking sleep. Apollo Neuro helps your body regulate naturally. Try Apollo Neuro risk-free for 30 days at Apollo. A-P-O-L-L-O Neuro N-E-U-R-O dot com That's Apollo Neuro at Apollo A-P-O-L-L-O Neuro N-E-U-R-O dot com This is Bloomberg Law with June Grosso from Bloomberg Radio. The Trump administration is not following all court orders, and that's according to federal judges.
1:57The judges are fielding more requests to force the administration to comply with their rulings against the federal government than in any other administration, including the first Trump administration. One of the earliest cases was when the chief D.C. judge in March of 2025 ordered the administration to turn back planes flying Venezuelan migrants to a prison in El Salvador, and the administration failed to do so. Now a study by Bloomberg Law shows that judges have found the administration has failed to comply with their orders in more than half of the 25 cases identified regarding preliminary injunctions.
2:41Joining me is Bloomberg Law reporter Suzanne Moniak, who's done the research and crunched the numbers. Normally, a judge issues an order and the parties comply with the order. What's been happening in several cases with orders issued against the federal government?
2:59Suzanne Monyak:We've seen some recent examples where the Trump administration has been at least accused of, and in some cases found of, not fully complying with these court orders. I've tracked two dozen examples, at least, of times when initial preliminary injunction orders issued early in a case were not fully followed, or at least the challengers allege that they were not being fully followed by the government under this administration alone. What kind of cases are we talking about? All different types of cases against the government. We've seen them in big cases over USAID funding cuts, the dismantling of international broadcaster Voice of America, other big cases across the country where there were early preliminary injunction orders granted against the administration telling them to stop doing something.
3:42Suzanne Monyak:And then we saw the challengers come back into court and claim the administration wasn't fully following that order. And in about half of those 25 instances, the judge agreed, at least in part. There was a scathing opinion by a Reagan appointee in the Voice of America case. And in another case, a senior D.C. federal judge said that the Defense Department's actions flout the court's explicit directives. So these federal judges are not beating around the bush. How upset are the judges about this failure to comply with their explicit orders? In some cases, pretty upset. And obviously, when it comes to judges, sometimes they're upset and they still write a pretty boring opinion.
4:22Suzanne Monyak:So it's hard to always know. But yes, as you mentioned in a couple of examples, the judges did, in fact, let us know that they weren't happy with the government's conduct. In that one instance, you mentioned Judge Lambert, a Reagan appointee in D.C., when he was handling the Voice of America case, said that he thought the government was, quote, in violation of even the most meager reading, end quote, of his court order. So definitely not pleased. We've also seen plenty of orders where the judge is kind of very matter of factly is like, I don't see the government as having fully complied with this order.
4:50Suzanne Monyak:These are inconsistent. You know, you need to do this differently if you want to be in compliance with my order. A few judges wanted to take things further or did take things further. So in Minnesota, you had the chief judge finding that ICE violated court orders in dozens of immigration cases. And then there was a federal judge who held a government lawyer in civil contempt, though that didn't last long. Tell us about that. Yes, in this story, I was tracking motions to enforce preliminary injunctions, but there have been a lot of different types of motions filed to force compliance with court orders against this administration.
5:26Suzanne Monyak:And in that one example you mentioned, we saw a Minnesota federal judge actually held a government lawyer briefly in civil contempt of court for not correctly facilitating the release of a detained immigrant. He was released in the wrong state without his property, and it came out that the lawyer hadn't forwarded the court's order to ICE on time, so there was just a full breakdown in communication. The lawyer actually, you know, did apologize and said, I've just been really overwhelmed, but the judge had ordered essentially a financial penalty for every day that the detained immigrant, you know, was not with his property.
5:59Suzanne Monyak:And the government did remedy it very quickly. I don't believe the government lawyer who was acting in the capacity of representing ICE did actually end up having to pay anything personally, but it was a pretty significant sanction to see against the government. So in these cases, the government is giving instructions about what the court said and what the agency is supposed to do. Do you know, Is it a lot of times that the government lawyers are screwing up or that the agency is just not complying? I think it's a mix. In the case I just mentioned in Minnesota, that was a case where there was definitely seemed to be an overwhelmed lawyer for the government.
6:36Suzanne Monyak:He was dealing with a lot of these immigration detention challenges known as habeas cases. But certainly I think there may be instances where it is, you know, the agency. And we've seen the government actually, like in that Minnesota case, say, like, look, we can't always be responsible for what the agency does. The Justice Department, of course, represents federal agencies in court. And so, you know, that's really kind of an interesting question as we see some of these compliance issues come up in cases. To what extent is the Justice Department responsible for a federal agency not fully following a court order or interpreting it too narrowly and, you know, not fully complying in the full spirit of the order?
7:14Suzanne Monyak:I think that's an interesting question and one that we've seen come up already. One of the first and probably still most famous cases is where the chief judge in D.C., Judge Boesberg, ordered the government when they were sending Venezuelan immigrants to prisons in El Salvador to turn the planes around. And they didn't. And he wanted to have a criminal contempt investigation. But what happened? The D.C. Circuit ruled against him on that issue and, you know, blocked a hearing from being held. Proceedings are still pending on that issue. But yes, that was probably one of the most famous issues of court compliance that have happened in this administration.
7:54Suzanne Monyak:And it happened so early, kind of set the tone perhaps for some of the issues to come. And in that case, we were talking about criminal contempt, which is a different form of contempt than we were discussing with the Minnesota lawyer. That was civil contempt. So quite a bit more serious. I mean, particularly it's noticeable in the immigration cases to me. But is it a reflection of the Trump administration sort of flexing or trying to flex its executive power or is it something else? Certainly, it depends who you ask. I think that it is fair to say that when we're seeing this many motions to force compliance of court orders, more motions to enforce preliminary orders, but also some of the other ones you've talked about to compel compliance, to consider contempt, that does probably show that we're dealing with an executive branch that is, you know, maybe interpreting court orders in a new way or really, you know, drawing more of this litigation as well.
8:48Suzanne Monyak:It's also partly a bit of a numbers game. To be clear, the majority of cases were not seeing these compliance orders. It is still a small share of them. It's just a significantly higher share of them we've seen involving the government and administrations past. The Department of Justice did respond to our reporting, and they blamed really more the plaintiffs. They said, this is not a pattern of noncompliance on our part. Our DOJ lawyers work closely with the agencies to make sure they're complying and said that it's actually the plaintiffs, the court challengers who are trying to test or expand the scope of injunctions.
9:20Suzanne Monyak:So I think what we're also kind of seeing, and not only is sort of this flexing of executive power, but it's also the tension between executive power and judicial power and the administration saying, you know, what can we do with the courts ruling as they are? And plaintiffs are saying, what can the courts do to keep the administration from doing what it's doing? So we're kind of seeing a lot of that push and pull lately. In how many cases did the judges actually find that there hadn't been compliance? We looked at a small slice of court compliance motions, which were motions to enforce preliminary injunctions.
9:53Suzanne Monyak:But I think it's an interesting example to look at because it shows a compliance issue really early in a case. A preliminary injunction would come down pretty soon after a lawsuit showing that the challenger was likely to win its case. And so then we're seeing the government, you know, immediately potentially not following that order. I think it's an interesting place to look. In that case of the 25 motions we identified and certain types of cases against the government, 14 of them had a judge either grant fully or partially that ruling. In a few other cases, it was either denied, sometimes it was resolved otherwise, or even mooted sometimes, because the case just progressed past that stage.
10:28Suzanne Monyak:But a 14 out of 25 was still somewhat of a striking number for comparison. Under the Biden administration, there were only two motions to enforce preliminary injunctions filed against the government. And one of them was partially granted in a Medicaid-involved case led by Texas. And during the first Trump administration, we saw 11 motions to enforce preliminary injunctions. About half of those partially or fully granted. So somewhat of a similar statistic, but I mean, that was 11 over four years. We're looking at 25 in a year and a half. So I think we can expect potentially this number to grow as the number of court challenges grow.
11:01And, you know, as we see the administration kind of see what, you know, they're able to do with these court orders. So I've talked with, you know, many former federal prosecutors who talk about how the presumption of regularity is being eroded in the Trump administration, in the second Trump administration, because the judges are not trusting what the government lawyers are saying.
11:28Suzanne Monyak:That's certainly a consequence when we're talking about court compliance issues. If we're seeing examples where the government is making, I mean, in addition to court compliance issues, there have also been notable examples where government lawyers have made mistakes in court, said things that they've had to go back and later correct. And even if they are still correcting it, which is what you're supposed to do, if you notice an error, you're supposed to correct it. That still does work to chip away at that presumption of regularity or the assumption judges make that the government's acting in good faith in court.
11:57Suzanne Monyak:Some of the lawyers I spoke to, you know, one of them told me that she didn't see the presumption of regularity as being in full crisis at this point yet, but that it's certainly being tested. So I think that's another thing that we're going to watch and both during this administration and in administrations to come. To what extent will the government be able to recover from this? It's also true that a lot of these lawyers who are being thrown into court, particularly in immigration cases, they have people who are not experts in immigration appearing in court. And they have a lot of inexperienced prosecutors because so many prosecutors left the Justice Department.
12:34Suzanne Monyak:Yes, the brain drain in the Justice Department is certainly a significant factor when it comes to these issues. Anytime you see a lawyer make a mistake in court who's really new to the department, I mean, you have to wonder if perhaps having had more of those career people who had years of experience being there might have helped. And certainly, again, in that Minnesota case, we were discussing the attorney who was briefly held in civil contempt was a military lawyer who'd been dispatched, apparently, to help out with the surge of immigration cases happening in Minnesota at the time because there wasn't the staffing to handle it.
13:07Suzanne Monyak:So, I mean, those are the things that happen. Things do slip through and you end up with mistakes being made, even under the best intentions, when there isn't full staffing or full level of experience. Suzanne, you put a lot of research into this. Thanks so much for sharing your findings with us. That's Bloomberg Law reporter, Suzanne Moniak. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work.
13:47Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business, IBM. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock.
14:20You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart.
14:28Suzanne Monyak:What if the secret to better sleep is already on your wrist? Apollo Neuro uses gentle, silent vibrations to help calm your body for sleep so you can fall asleep faster, sleep deeper, and wake up actually feeling rested. This isn't just tracking sleep. Apollo Neuro helps your body regulate naturally. Try Apollo Neuro risk-free for 30 days at Apollo. A-P-O-L-L-O Neuro N-E-U-R-O Dot com That's Apollo Neuro at Apollo. A-P-O-L-L-O Neuro N-E-U-R-O Dot com It's the biggest legal fight yet over harm to youth from social media. and a pivotal moment for Metta, which is facing a possibility of a$1.4 trillion damages verdict and structural changes to its platform.
15:23Metta is once again on trial over dangers its platforms allegedly posed to children, and it's arguing, once again, that it works hard to make its platform safe for children. State attorneys general accused Metta of contributing to the youth mental health crisis by knowingly and deliberately designing features that addict children to its platforms and hiding these harms from the public. It also argues that Meta routinely collects data on children under 13 without their parents' consent in violation of federal law. Joining me is Bloomberg legal reporter Madeline Meckleberg, who's covering the trial.
16:05Madeline, tell us about this sort of new strategy the plaintiffs are using where they're arguing that it's the products themselves, their design and functionality that have created harms rather than talking about the content. That's right. So this case is like thousands of others that have been filed in that it's an attempt by litigants to get around Section 230, which gives pretty broad protections to technology companies from liability for content that's posted on their website. And so there are different baskets of cases that we can talk about, but essentially all of them are seeking to hold companies like Meta, TikTok, Snapchat, Google's YouTube.
16:53They're trying to hold them accountable for the design of their platforms and features that they say are designed to be addictive and harmful to kids. So it's the public nuisance theory that was used in the New Mexico case. So the case that's at trial right now with the state attorneys general is not a public nuisance case. That's a legal theory that's being put forward in cases that have been filed by groups of school districts and by some individual attorneys general. There are a ton of cases, so it's pretty confusing and it's hard to keep track of all of them. But the case that's at trial right now involves 29 state AGs and they've brought their case under two kind of baskets of legal claims.
17:34The first one is consumer protection laws. And this is where it gets slightly more confusing. Only four of the 29 states have brought consumer protection claims, but they're all being tried together at this trial. And those are claims about the design of the platform. They say that they knowingly designed it to hook kids and importantly, that they misled the public and parents about risks that the companies should have known about its products. and that's one basket and then there's also privacy claims during this lawsuit and so the rest of the states are alleging that meta knew that there were users under 13 on its platform and it was collecting data from those kids in violation of federal law so it's two different kind of baskets but it's being discussed as part of this broader landscape of the cases against social media and they're all kind of trying slightly different novel legal theories as different ways of getting at these companies.
18:28And I want to clarify that the case that's happening right now, Metta is the only defendant in this DAG case. Some of the other cases include other social media companies, but this one is just Metta. In the opening statement, the plaintiff's attorney said the business model is hook the user, hook them for as long as you can, harvest their data, and then hide the truth. Did she say how she was going to prove that? That's right. She was talking about her four H's and kind of giving the jurors a roadmap of what we can expect to hear. And I think for folks that were following some of the developments in the personal injury case that happened earlier this year, we're going to see a lot of similar arguments and similar witnesses come forward.
19:10They're planning to call folks like Mark Zuckerberg and Adam Mosseri, who's the CEO of Meta and the head of Instagram, respectively. They're going to call current and former employees to talk about the design and to talk about internal studies at Meta that they conducted about teen users and harms that they report experiencing on the platforms. And they also are going to call in folks like Arturo Behar, who was the first witness. He's a former employee turned whistleblower who's spoken very publicly about his safety concerns with the platform. So it's going to be a lot of witness testimony and internal documents showing what Meta knew when and then juxtaposing that with what messaging they were putting out to the public.
19:53Because that's a kind of important component in this case, is this idea that they misled or otherwise hid information that the attorneys are arguing should have been made available. A lot of the witnesses have already testified in other cases. And so both sides should pretty much know what they're going to say. I think that's definitely one way to look at it. I don't think at this moment we're expecting any major bombshells to be revealed about things going on at Meta that we didn't know about. And I think that's kind of the point of these cases is it's not about unearthing previously unknown information, which sometimes is what happens when cases go to trial.
20:36This is an issue that we are well aware of as the public. Like it's something that's been discussed at congressional hearings, in other cases, and by the companies themselves as they've repeatedly rolled out their attempts at safety features. And, you know, you might hear about teen accounts on different platforms. And so this is about finding an avenue for accountability for certain groups of litigants for this company. And so, yeah, I think a lot of the testimony is going to be familiar to folks that really care about this issue and follow it. But that doesn't make it any less important because at the end of the day, it doesn't really matter what we know about it.
21:12What matters is that this is potentially the first time that those jurors sitting in the room are hearing about some of this stuff, hearing the testimony, seeing these internal emails. Let me ask you about the jury, because it's an advisory jury. This judge has used that kind of advisory jury before. Yes. Judge Yvonne Gonzalez Rogers is probably well known to folks following any kind of the social media cases, but also just kind of tech and Silicon Valley cases in general. She's seated in Oakland, and we saw her do the similar strategy at a recent high-profile case, which was the Elon Musk lawsuit against Sam Altman in OpenAI, where she essentially is having a jury seated for the trial.
21:55They're hearing all the evidence, and they're going to issue a verdict. They don't know that their opinion is going to be advisory. But then at the end of the day, Judge Rogers can decide whether she wants to adopt their findings or whether she feels like the evidence is pointing her in a different direction. They'll be disappointed when they find out. They sat for all these weeks and their verdict is not binding. It doesn't mean it's not, you know, they're not doing a valuable service. Like there's a reason that she's doing that. And it's that these cases are incredibly complicated. And while this one is not a bellwether, it's still part of this massive multi-district litigation.
22:30And the outcome here, again, it won't necessarily set a precedent until there's appeals and kind of gets decided at the circuit level in some respects. But what happens here will have sway in other cases. So I think what we're seeing is a judge who's really trying to dot all the I's, cross all the T's and make sure that she's really giving it fair consideration. Do you know if she followed the jury's suggestions in the open AI case with Altman and Elon Musk? She did. She did follow their suggestions there. And that was because she kind of said from the outset in that case, there was a question of timing and whether Musk waited too long to file his claims and the statute of limitations.
23:10And she said that if the jury made a finding on the statute of limitations question, she would adopt that without question, because that's a key. You know, they didn't weigh in on the merits of his claims, actually, just whether he took too long to file them. So you heard from the defense attorney as well, opening statements. What was his position? That's right. So Metta has maintained, you know, they deny all of the allegations that have been brought forward in this lawsuit. And he talked a lot about safety features that Metta has rolled out and said that they've made real efforts to try to reduce purported harms to teenagers.
23:48Another thing that we've heard Metta talk about and their legal team talk about is this idea of 13 year olds on the platform and kids under the age of 13. they've talked about how this is an industry-wide issue is kids signing up when they're not supposed to have accounts and they feel that this is an industry-wide challenge it's not something that they should be singled out for in this case this is something that that needs to be tackled at a more systemic level and everyone's trying to brainstorm solutions on that and so I think what you heard from them is that the AGs are really overstating their case that's another thing I I think I'm sure we're going to talk about this big$1.4 trillion penalty number that's been floated.
24:30I think Meta's stance is that, you know, when we're talking about specific consumer protection violations, the number that's being floated is totally disproportionate to the allegations at issue. And that's another component of this is they've said, you're not going to hear directly from kids in this case. You're not going to hear from people who've been harmed. You're supposed to just take the attorney's general word for this. And that's not good enough. They're not going to call any children or young adults? I don't believe that there's any individuals on the witness list. And that's because this case is different than, you know, the personal injury cases is a whole other category.
Read the full transcript
25:05And that's where an individual or their family member is suing these social media companies saying that they personally experienced harm due to the defective, dangerous design of these platforms. This case is a little different with AGs. they're obviously like trying to enforce their state laws. And yeah, I don't, as far as I know, there's not a plan to call individual users within their states. Stay with me, Madeline. Coming up next on the Bloomberg Law Show, I'll continue this conversation with Madeline Meckleberg, who's covering the MetaTrial. What about that possible$1.4 trillion in damages?
25:43Where does it come from? And is it inflated? I'm June Grosso, and you're listening to Bloomberg. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
26:49Trial at adio.com slash iHeart. Early morning on a Manhattan sidewalk, a shooting caught on surveillance video. It was an assassination-style killing, and everybody saw it. Now, as Luigi Mangione prepares to stand trial for the murder of UnitedHealthcare CEO Brian Thompson, which he denies, a new podcast series from ABC Audio and 2020 goes inside this captivating case. I'm ABC News legal analyst Brian Buckmeyer. Listen to Burden of Proof, Luigi Mangione, wherever you get your podcasts.
27:30It's the very definition of a high-stakes trial. Dozens of state attorneys general are suing Meta, claiming it uses unprecedented technology to entice, engage, and ensnare children and teenagers, harming their mental health. The potential financial penalty is a shocking$1.4 trillion, that for a company that has a$1.5 trillion market value. And more than monetary damages, the state AGs are asking the judge to order Meta to make structural changes to its platform. Meta has denied wrongdoing, saying it's continuously improved its tools to protect kids. I've been talking to Bloomberg legal reporter Madeline Meckleberg, who's covering the trial.
28:20So, Madeline, about this$1.4 trillion number. That number came from Meta, didn't it? The state AGs haven't specified a number. So, nobody wants to take credit at this point for the$1.4 trillion number, but it's out there, and so we have to talk about it. And that's because the way that penalties are calculated under consumer protection laws is basically these four states, they have a fine structure built into the law. So for every violation of a consumer protection law, I think Colorado had the highest. It's a$20 ,000 fine. And so then the question becomes, if the jury and judge decide to rule against Metta and in the AG's favor, now we have to do some math calculations and determine what equals a violation.
29:07Like, what should we count for that? And that's why we're seeing such a wide discrepancy in the amount of penalties that's being discussed. Because if your bar for what counts as a violation is lower for all these states, there is a world where you get to a one point four trillion dollar number. But we've heard the state AG's attorneys say that they've done their own kind of calculating and they think that it's probably closer to the two hundred billion dollar mark, which, you know, that's still a ton of money. Like next to$1.4 trillion, it sounds, you know, oh, maybe that's not so bad. That's still a ton of money.
29:39And I think the other thing in this case is that the penalties are just one part of it. Like the high stakes here that are different than in the personal injury cases is that the attorneys are seeking court orders requiring Meta to change its business and change how it's designing its platforms. They want orders that really enforce the age limit in a way that they haven't previously. They want them to do away with the design features that are at issue, like the way they send notifications and features about their algorithm and the way that you can open Instagram and scroll, scroll, scroll and never hit the end of the feed.
30:13And so there's a lot at stake here, even if the dollar amount does not ultimately, at the end of the day, reach that trillion dollar benchmark. Mark. The accusation that Meta collected data from users under 13 in violation of the Children's Online Privacy Protection Act. Has that been litigated before? I don't have an answer to that, actually. I think that it's I feel like there's been there's like individual cases about that, but it's certainly nothing on this scale. But I don't have a concrete answer for you on that. Tell us about the first witness the state AGs called. He's testified several times before, but he must be very important because they chose him as their first witness.
30:58Right. And there was a lot of back and forth fighting before he even took the stand between Meta and the state AGs about whether he should be allowed to testify. And that's Arturo Bejar. He is a former researcher and manager at Meta who kind of separate stints at the company. his first one was when they were still Facebook before they were meta he was on an engineering team that was looking at safety features on the platforms all of them Facebook Instagram and WhatsApp and then he left meta to spend time with his family he said on the stand he was going through a divorce and he wanted to be home with his teenage kids and after a few years he decided to return to meta as an independent contractor working on Instagram's well-being team which is focused on similar issues of safety and how to improve the user experience.
31:46But he's an interesting witness because he no longer works at Meta. He left in 2021. And his story is one where he said he repeatedly tried to raise concerns to leaders at the company, including the highest levels, Mark Zuckerberg. He was in kind of a position where he was regularly interacting with the very top folks at Meta. And he said he repeatedly tried to raise concerns about safety and concerns about the way that Metta measures safety in its internal studies and that he was routinely dismissed. And I think some of his most powerful testimony is about his personal experience, which is during this time that he was not working at Metta.
32:24His teenage daughter was 14 and she wanted to sign up for an Instagram account. And he said he saw firsthand some of the harassment that she was experiencing from people online, sending her inappropriate messages, soliciting sex and images. And he said And he found it shocking, even as someone who had a six-year career at Metta working in safety. And so that inspired him to go back to the company. And he felt like when he tried to tell his daughter's story there as an anecdote and as evidence that they really need to do something about this issue, he said he was overlooked. Metta has faced two trials.
32:58They've lost in both. But it seems as if from hearing what the defense attorney said and from hearing the witnesses that their strategy appears to be the same. We work to implement changes that would help mitigate this problem. It sounds pretty much the same. I think it's very similar. I think it's a little early to tell for sure how this case is going to play out. But I think it's definitely similar. I mean, I think a lot of the real, like, litigating and legal nitpicking about the arguments is going to happen on appeal. There's no way that whoever loses here doesn't seek an appeal in the Ninth Circuit.
33:40And that's, I think, when we're really going to get to the meat and potatoes of this case and legal arguments. And I think that's where a lot of focus is on, frankly, and kind of revisiting the Section 230 issue. I mean, there was a ruling from the Ninth Circuit on that, allowing this trial to proceed. But it's not a done deal by any means. And I think there's already been in the first few days, the judges had to remind the AGs like, OK, we're not veering into content. Remember, like, let's focus on this. And that was something we heard in the previous trials, too. So I definitely think Meta has a similar stance going into this trial, but the claims are slightly different.
34:16And so I'm sure we're going to see a little bit of different legal maneuvering, but it's kind of early to tell at this point. So what's happening with the thousands of other cases, school districts and individuals? What's happening with those? And that's the big question. So yeah, there's thousands. I think we're up to 3 ,000 cases that have been filed against these companies. And they've all been consolidated into separate multi-district litigation proceedings where they're kind of trying to navigate the just huge scope of cases. And so they picked a handful of cases to serve as bellwethers. And so those are selected, not, you know, for any particular reason.
35:01It's not the best case. It's not the worst case. They're meant to be a few cases that are representative of the whole. And those cases are going to trial first. So we saw one of those trials earlier this year in L.A. in the personal injury case. It was a teenage girl named Kaylee, and she won. She received a verdict from the jury against Meta and against YouTube. and there were confidential settlement agreements she reached with TikTok and Snap ahead of trial. And there was another bellwether that was set to have a trial this summer and that individual also reached settlements with the parties and then ultimately dismissed his claims against Metta.
35:35So we're still very early days in moving through all of those cases as well, but I think there's a few more scheduled before the end of the year in school district cases and the personal injury cases. And the idea is once these bellwether cases have been heard, then there's going to have to be some conversations about how to resolve the rest of them. Do these companies want to go to trial over and over and over against all these claims? Do these parties feel like they have enough evidence to continue going to trial with the social media companies or do they want to dismiss it? It's expensive to pursue litigation.
36:10And so these bellwethers are really informative for both sides of whether it's worth it to kind of stick it out and keep fighting. But there's still a long road ahead for everybody. Are the state AGs also suing other social media, this coalition? Are they suing other social media companies? That's a good question. I don't think this coalition specifically is pursuing claims against other companies, but there are other AGs and other coalitions of AGs that are pursuing claims against other companies. It's a wild web, And I do not envy the judges and the lawyers that are responsible for keeping track of it.
36:46Or the reporters. Yeah, let's talk about the reporters. So, Madeline, what's been happening in Europe and Australia, as opposed to what's been happening in Congress here, which is basically... That's right. So, Australia and Europe, the authorities there, have been able to pursue those kinds of regulations. And here we're seeing some of that at the state level. Different states have tried to put down at least crackdowns or limitations or specifically dealing with this age requirement, age verification requirement. We're seeing a lot of that. But they've had a lot of trouble. They've hit roadblocks in the courts and these companies are not, you know, accepting regulations silently and they're pushing back.
37:28And I think that makes this case and others like it so significant is because I think for a lot of folks who are on this side of wanting to rein in the companies, wanting to kind of push back a bit on this, what they see as this like widespread crisis of addiction and harm. They see the courts as kind of their their last stand or a really important battleground for this issue, because, you know, there's attempts at it, but it's so far not been successful at a legislative level. And Meta CEO Mark Zuckerberg will be called to testify in this trial. What about some of the other cases? Will he be called in all these cases?
38:08He's a high profile witness and it's an interesting, you know, always interesting when the heads of these companies come to court and have to testify in front of a jury of regular people who are seeing this person and kind of seeing them out of their element. It always it brings out a really interesting side of them. But I do think that while they're trying to get him to testify in every case, I think it's very unlikely that he'll be called back to speak in everything. I think in one of the personal injury bellwethers coming up, they're working out agreements to film some of his depositions so that they can replay that in court versus calling him as a live witness.
38:44Because not only is it, you know, he has a very demanding schedule, as so many of us do, but it can be hard to coordinate those appearances. But it's also a lot for the courts, too, to have to manage having a high-profile person there and security needs and the like. There was no trial today because one of the jurors called in sick. But I know you will be back at work on Monday reporting for us. Thanks so much, Madeline. That's Bloomberg legal reporter Madeline Mecklenburg. And that's it for this edition of the Bloomberg Law Show. Remember, you can always get the latest legal news on our Bloomberg Law podcast.
39:19You can find them on Apple Podcasts, Spotify, and at www.bloomberg.com slash podcast slash law. And remember to tune into the Bloomberg Law Show every weeknight at 10 p.m. Wall Street time. I'm June Grosso, and you're listening to Bloomberg.
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From the publisher
Bloomberg Law reporter Suzanne Monyak discusses her research showing that judges have found the Trump administration failing to comply with their orders in more than half of the 25 cases involving preliminary injunctions. Then Bloomberg legal reporter Madlin Mekelburg discusses the Meta trial and the first witness to testify. June Grasso hosts.
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