Snap faces the teen addiction trial alone after Meta settled; its Q3 lands the day opening statements begin
Meta settled with the second teen plaintiff on Friday, leaving Snap the sole defendant in the Los Angeles addiction trial whose opening statements land Wednesday, November 4, the same day Snap reports third-quarter results against $1.70 billion to $1.74 billion of guided revenue.
Vincent Jiang · 3 min read
Two girls, ages 16 and 18, stood ready to put Snapchat on a Los Angeles jury 123. On Friday, Meta−1.65% — Meta, down 1.65 percent today paid to get off the docket instead. The company behind Facebook and Instagram settled with the second plaintiff in the teen social media addiction case, leaving Snap, the smallest−5.99% — Snap, the smallest, down 5.99 percent today of the four platforms named, as the sole defendant when opening statements begin Wednesday, November 4 123.
Meta bought its way off the stand
The plaintiffs, identified in court documents as S.J. and K.D.B., say they began "addictive and problematic" use of social media at ages 13 and 15, and that it contributed to depression, anxiety, an eating disorder and self-harm 23.
TikTok and YouTube−0.82% — YouTube, down 0.82 percent today settled with them before trial; Meta settled with S.J. last week and with K.D.B. on Friday, terms undisclosed 2. Sources close to Meta told AFP the decision was made for business reasons: settling avoids legal costs and shields executives from the witness box, where Mark Zuckerberg and Instagram chief Adam Mosseri were expected to be called 3. Meta's own framing: "Trials, dismissals and settlements are all common in the bellwether process" 23.
Snap holds the theory, and the bill
What Snap holds alone is the design-defect theory that began with a speed filter: a 2015 Georgia crash at 107 mph, a 2018 appeals ruling that product design claims survive Section 230, and a national docket now above 9,000 personal injury suits and 2,000 school district suits 5. The plaintiffs say Snapchat's Snapstreaks, Snapscores, push notifications and filters were built to maximize time young users spend on the app; Snap says the claims "fundamentally misrepresent" their experiences 12.
The money problem sits under the theory
The record behind the theory is the money problem. Snap has never reported an annual profit, ended 2025 with $4.14 billion of debt against $2.94 billion of cash and short-term investments, and produced $437 million of free cash flow in 2025, $705.5 million over the twelve months to June 4.
Snap carries about $4.2 billion of debt against roughly $1 billion of cash
- Cash
- Debt
Data
| Cash | Debt | |
|---|---|---|
| Q3 '23 | $1.2B | $4.16B |
| Q4 '23 | $1.78B | $4.35B |
| Q1 '24 | $1.06B | $3.89B |
| Q2 '24 | $1.06B | $4.24B |
| Q3 '24 | $0.97B | $4.24B |
| Q4 '24 | $1.05B | $4.24B |
| Q1 '25 | $0.91B | $4.21B |
| Q2 '25 | $0.93B | $4.19B |
| Q3 '25 | $0.95B | $4.15B |
| Q4 '25 | $1.03B | $4.14B |
| Q1 '26 | $1.06B | $4.2B |
| Q2 '26 | $0.96B | $4.23B |
Meta agreed in August to pay up to $18.59 billion to 52 state attorneys general, took a $9.89 billion charge in the third quarter, and still ended September with $82.45 billion of cash 4. That cushion is thinner than it looks: Meta's third-quarter free cash flow was negative $2.12 billion on AI spending 4. The industry's deepest pocket is the one AI capex is draining, so settle-or-defend has become a financing question for everyone, Snap most of all.
The trial opens the same day Snap needs its best quarter
Data
| Revenue | |
|---|---|
| Q3 '24 | $1.37B |
| Q4 '24 | $1.56B |
| Q1 '25 | $1.36B |
| Q2 '25 | $1.35B |
| Q3 '25 | $1.51B |
| Q4 '25 | $1.72B |
| Q1 '26 | $1.53B |
| Q2 '26 | $1.6B |
November 4 puts the price on the docket
Opening statements are scheduled for Wednesday, the trial expected to run into mid-December, and Snap chief Evan Spiegel is expected to testify if it proceeds 23. Snap reports third-quarter results the same day against guidance of $1.70 billion to $1.74 billion of revenue and $300 million to $350 million of adjusted EBITDA 4, a beat of its best quarter on record, $1.716 billion in Q4 2025 6.
Evercore's−2.38% — Evercore, down 2.38 percent today ad channel checks on the company are negative, UBS keeps the stock at Neutral with a $7 target, Florida's ban on Snapchat-style apps for under-14s is now enforceable, and a Form 144 flags an insider's planned share sale 7. As reported when jury selection opened this week (/article/snap-runs-out-of-settlements-first-jury-hears-the-snapchat-design-defense-this-week), one verdict would put a price on thousands of similar suits.
The double print on November 4 sets that price. Snap can still settle before the verdict; that is the risk on the short side.
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