Meta agreed to an $18 billion settlement with 29 U.S. states over allegations that Facebook and Instagram harmed younger users, while denying wrongdoing. The company will record a $10 billion legal charge in the third quarter and pay the settlement over ten years, but said its July guidance remains unchanged. The agreement includes limits on minors' daily use, removal of certain cosmetic filters and stricter age verification. Full payment is conditional on YouTube and TikTok making similar changes, according to CNBC. The case was tried in federal court in Oakland after state attorneys general alleged violations of the Children's Online Privacy Protection Act, with potential penalties previously estimated in Meta filings at about $1.4 trillion. Morgan Stanley said the resolution could precede new product introductions, while Needham maintained a hold rating and cited concerns about Meta spreading resources across multiple technology initiatives. Morgan Stanley estimated adolescents generate about 1% of Meta's revenue and said engagement limits could affect YouTube more because its user base is younger than those of Facebook and Instagram.