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TikTok reached a last-minute settlement to avoid being pulled into a closely watched social media addiction trial, striking a deal just hours before jury selection was set to begin in a California courtroom.

Allegations of Algorithm-Driven Harm

The case was brought by a 20-year-old woman identified as KGM, who alleges that the design of social media algorithms left her addicted to online platforms and caused lasting damage to her mental health.

“The parties are pleased to have reached an amicable resolution of this dispute,” the Social Media Victims Law Center said in a statement announcing the TikTok addiction lawsuit settlement, noting that the terms remain confidential.

TikTok’s exit leaves Meta — the parent company of Instagram and Facebook — and Google, which owns YouTube, as the remaining defendants. Snapchat reached its own settlement with the plaintiff last week.

A Turning Point for Tech Liability

The companies named in the suit have consistently argued that the plaintiff has failed to show they are responsible for alleged harms such as depression and eating disorders. Still, the case moving forward to trial marks a significant shift in how U.S. courts are confronting claims that social media platforms fuel addictive behavior.

For decades, tech firms have relied on Section 230 of the Communications Decency Act, a 1996 law shielding platforms from liability for user-generated content. But this case zeroes in not on posts themselves, but on product design — algorithms, notifications and engagement features that critics say hook users and keep them scrolling.

“Dangerous and Addictive Algorithms”

KGM’s attorney, Matthew Bergman, said the trial represents uncharted legal territory. He told the BBC it would be the first time a jury would hear evidence holding a social media company directly accountable for addiction-related harms.

“Unfortunately, there are all too many kids in the United States, the UK, and around the world who are suffering as KGM does because of the dangerous and addictive algorithms that the social media platforms foist on unsuspecting kids,” Bergman said. “These companies are going to have to explain to a jury why their profits were more important than the lives of our young people.”

High Stakes for Silicon Valley

Eric Goldman, a law professor at Santa Clara University, said adverse verdicts could threaten the very foundation of social media businesses. Still, he cautioned that proving a direct causal link between platform design and physical or psychological harm remains a steep challenge.

“The fact that the plaintiffs have been able to sell that idea has opened the door to a whole bunch of new legal questions that the law wasn’t really designed to answer,” Goldman said.