Litigation Lending Services backs Australian class action against Meta over alleged harm to children

Australian litigation funder Litigation Lending Services (LLS) is financing a class action against Meta Platforms, alleging that the design and operation of Facebook and Instagram caused psychological harm to children and teenagers, in what is understood to be Australia's first class action targeting the mental health effects of social media platforms.

The proceedings, filed in the Federal Court of Australia earlier this month, are being conducted by MinterEllison on behalf of eight representative applicants who allege they suffered harm while using Meta's platforms as minors. The claims concern features allegedly designed to encourage prolonged engagement and expose young users to harmful content.

The applicants allege that Meta was aware of risks associated with its platforms but continued to employ features intended to increase user engagement. The Federal Court has made suppression orders restricting publication of certain details of the claims and the identities of the applicants.

The Australian proceedings follow significant litigation against Meta and other social media companies in the United States, where plaintiffs have pursued claims concerning allegedly addictive platform design, inadequate safeguards for minors and resulting mental health injuries. Several US proceedings have resulted in substantial judgments and settlements, although the legal principles governing liability and damages differ from those applicable in Australia.

The litigation comes amid a changing regulatory environment. Australia introduced restrictions on social media accounts for children under 16 in December 2025, creating additional questions about the scope of potential claims and the interaction between platform regulation and private civil enforcement.

Herbert Smith Freehills Kramer is representing Meta, which has denied the allegations and said it intends to vigorously defend the proceedings.