Snap settled a child safety lawsuit this week on confidential terms, avoiding testimony from CEO Evan Spiegel in Los Angeles court. Meta, TikTok and YouTube had previously settled in the same suit. Google faced a new lawsuit over alleged psychological harm to a teenager who used the Gemini AI chatbot in Google Classroom.
The settlements reflect a broader trend of tech companies shielding themselves from public scrutiny as multiple child-safety trials proceed. Meta and YouTube lost related trials earlier this year, with more trials scheduled for March. In August, Meta agreed to pay nearly $17 billion to settle with state attorneys general over child mental health claims.
Google moved the Gemini AI tool into Chromebook computers for schools while also making search and AI deeply integrated, according to a statement from Chris Phillips, vice president for education at Google. Schools that decline to use Google's AI tools will lose search access, the New York Times reported. The company said it has worked with medical professionals and academic experts to build support features for young people.
Plaintiffs' attorneys and state AGs have focused on alleged harms from platform design rather than user-generated content, sidestepping Section 230 protections that have shielded social media companies since 1996. OpenAI faces multiple lawsuits from state attorneys general and plaintiff attorneys over ChatGPT design risks to children. Anthropic highlighted litigation risks in its prospectus ahead of a planned public offering this month, even though Anthropic prohibits children from using Claude.
Joseph McNally, director of emerging litigation at McNicholas & McNicholas, said tech companies view settlements as an effort to rebuild reputation and address legal challenges. Kate Blocker, developmental psychologist and director of research for the nonprofit Children and Screens, stressed that safety must be considered during product design, not after harms emerge.
Michele Neitz, professor at the University of San Francisco School of Law, noted that anticipated litigation risks now exceed those of a decade ago. A federal case involving Meta, TikTok, Snap, YouTube and nationwide school districts remains pending, along with various state attorney general suits.
Investors monitoring Meta, Google, Snap, TikTok and OpenAI should track whether additional settlements or trial verdicts increase litigation costs and whether Section 230 protections face legal or regulatory challenges.