Business
Landmark L.A. jury verdict finds Instagram, YouTube were designed to addict kids
After a grueling seven weeks of court proceedings and more than 40 hours of tense deliberations across nine days in one of the country’s most closely-watched civil trials, jurors handed down a landmark decision in Los Angeles Superior Court on Wednesday, finding Instagram and YouTube responsible for the suffering of a Chico woman who charged the platforms were built to addict young users. .
Kaley G.M., the 20-year-old plaintiff, arrived in court just before 10 a.m. wearing the same rose-colored maxi dress she’d donned to testify in February. She remained stoic as the verdict, the $3 million damages award and the decision warranting punitive damages were read out. A companion fought back tears, her chin quivering. Several observers wept silently despite Judge Carolyn B. Kuhl’s repeated warning not to respond.
“We need to have no reaction to the jury’s verdict — no crying out, no reactions, no disturbance,” Kuhl warned. “If there is we will have to have you removed from the courtroom, and we sure don’t want to have to do that.”
Attorneys for Snapchat and TikTok also appeared in court Wednesday morning to hear the decision. The two platforms settled with Kaley out of court for undisclosed sums before the trial.
“We respectfully disagree with the verdict and are evaluating our legal options,” a spokesperson for Instagram’s parent company Meta said.
The verdict arrived less than 24 hours after a New Mexico jury found Meta liable for $375 million in damages related to Atty. Gen. Raúl Torres’ claim it turned Instagram into a “breeding ground” for child predators — a decision the platform has vowed to appeal.
The Los Angeles jury took much longer to deliberate. On Friday, jurors preempted their pizza lunch break to ask Kuhl whether all of them should weigh in on damages, or only those who’d agreed on liability. On Monday they told Kuhl they were struggling to agree about one of the defendants.
Kuhl told the jury to keep trying.
Kaley said she first got hooked on YouTube and Instagram in grade school. Jurors were charged with determining whether the companies acted negligently in designing their products and failed to warn her of the dangers.
Their verdict will echo through of thousands of other pending lawsuits, reshaping the legal landscape for some of the world’s most powerful companies. Experts say the payout will likely set the bar for future awards.
It comes on the heels of a Delaware court decision clearing Meta’s insurers of responsibility for damages incurred from “several thousand lawsuits regarding the harm its platforms allegedly cause children” — a ruling that could leave it and other tech titans on the hook for untold future millions.
Until this trial, which began in late January, no suit seeking to hold tech titans responsible for harms to children had ever reached a jury. Many more are now set to follow.
Amy Neville (L), who lost her son Alexander at 14 from fentanyl he purchased through social media, is hugged by attorney Laura Marquez-Garrett, as they wait for a verdict in the social media trial tasked to determine whether social media giants deliberately designed their platforms to be addictive to children, in Los Angeles, on March 20, 2026.
(PATRICK T. FALLON/AFP via Getty Images)
Kaley’s test case was chosen from among scores of suits currently consolidated in California state court. Hundreds more are moving together through the federal system, where the first trial is set for June in San Francisco.
Collectively, the suits seek to prove that harm flowed not from user content but from the design and operation of the platforms themselves.
That’s a critical legal distinction, experts say. Social media companies have so far been protected by a powerful 1996 law called Section 230, which has shielded the apps from responsibility for what happens to children who use it.
Lawyers for Meta and Google argued Kaley’s struggles were the result of her fractious home life and fallout from the COVID pandemic, not social media.
Phyllis Jones (R), attorney for Meta, leaves the Los Angeles Superior Court on March 12, 2026.
(Frederic J. Brown/AFP via Getty Images)
“I don’t think it should have ever gotten to a jury trial,” said Erwin Chemerinsky, dean of the UC Berkeley School of Law and an expert on the 1st Amendment, which also protects the platforms. “All media tries to keep people on [their platform] and coming back.”
Others say social media’s algorithmic ability to capture, cultivate and control attention makes it fundamentally different from teen-friendly romantasy novels, Marvel movies or first-person shooter games.
“These are truly hard and heart breaking cases,” said Eric J. Segall, a professor at Georgia State College of Law. “[They] represent a clash between free speech values and the real harms caused by protecting those companies that engage in free speech amplification for profit.”
“Letting jurors sort all of this out without more guidance is tempting but also risky,” he said.
As deliberations that began March 13 wore on, jurors signaled similar skepticism, asking to see internal Meta documents, and reviewing testimony from a defense expert “in regards to her professional integrity; being the only doctor stating social media was not a contributing factor to KGM’s mental health.”
They appeared to agree on Meta’s culpability by Friday, but labored through Tuesday to hash out a decision for Google, delivering their verdict just after 10 a.m. Wednesday.
“Today, a jury saw the truth and held Meta and Google accountable for designing products that addict and harm children,” said Lexi Hazam, court-appointed co-lead plaintiffs’ counsel in the related federal action. “This verdict sends an unmistakable message that no company is above accountability.”
The outcome will likely transform the already heated debate over social media addiction as a concept, what role apps may play in engineering it, and whether individuals like Kaley can prove they’re afflicted.
The platforms’ attorneys sought to cast doubt on the ailment — emphasizing that there is no formal diagnosis for social media addiction — while also arguing that Kaley had never been treated for it.
“Substitute the words ‘YouTube’ for the word methamphetamine,” attorney Luis Li urged the jury during closing arguments Thursday. “Ask yourselves with your lifetime of experience whether anybody suffering from addiction could say, ‘Yeah, I just kind of lost interest.’”
“She was sitting there for hours without being on her phone,” said Meta attorney Paul W. Schmidt.
YouTube’s team also sought to distance the video-sharing app from Instagram and other social media platforms, saying its functions are fundamentally different.
Kaley’s team called it “a gateway” to her social media addiction.
“YouTube wasn’t a gateway to anything,” Li said. “YouTube was a toy that a child liked and then put down.”
Jurors disagreed, ultimately holding the platform liable, though they split the liability 70-30, weighting heavily to Meta.
Lanier leaned on his down-home Texas folksiness throughout the trial, telling the jury what was on his heart and scribbling with grease pencil on his demonstrative aids. In his direct addresses to the jury, he used a set of wooden baby blocks, stacks of paper, even a hammer and a crate of eggs.
During the punitive phase of the trial late Wednesday morning, he brought out a glass jar filled with 415 peanut M&Ms to represent the $415 billion dollars of stockholder’s equity Google’s parent company Alphabet was valued at in December.
“What are you going to fine them for this?” he probed. “Are you going to fine them a billion?” He plucked a green M&M from the top of the pile. “Two billion?” He pulled out another. “You know a pack of M&Ms has 18 M&Ms in it? You fine them a billion, and they’re not going to notice.”
“The last thing in the world they want you to do is talk about how many M&Ms they’ve got,” the lawyer said, urging jurors to “talk to Meta in Meta money”. “The last thing in the world they want you to do is focus on what it takes to hold them accountable for what they’ve done.”
Conversely, the tech teams relied on slick digital presentations to review evidence and illustrate their arguments.
“Focus on those facts that are at issue in this case,” Schmit urged the jury during closings. “Not lawyer arguments, not props like a glass of water or a jar of M&Ms, But actual proof in evidence.”
During the punitive phase of the trial, he sought to emphasize that “there wasn’t an intention to do harm” to children, and that it had worked diligently to make its products safer.
The case was the first to get Meta CEO Mark Zuckerberg on the witness stand, where he defended Instagram’s safety record and lamented the difficulty of keeping youngsters off the app.
It also made public tens of thousands of pages of internal documents — documents Lanier argued showed the companies intentionally targeted children, and engineered their products to keep them on the platforms longer.
“These are internal documents that you’re uniquely seeing because you’re the jury that got to sit on this case,” Lanier told the jury during closing arguments on Thursday. “It’s given you exposure that the world hasn’t had.”
Those previously undisclosed materials likely proved critical to the jury’s ultimate verdict, experts said.
“Internal emails here were key — they painted a picture of indifference at Meta,” said Joseph McNally, former Acting U.S. Attorney for the Central District of California and an expert in “technology-related harm.”
The tech titans have already vowed to appeal both the California and New Mexico verdicts, all-but ensuring the issue is ultimately decided by the Supreme Court, experts said.
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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