Why Meta Is Paying $25 Million To Settle A Trump Lawsuit

Donald Trump spent decades in business gleefully suing and angrily being sued by his adversaries in civil court. But since winning reelection, he has suddenly posted a remarkable string of legal victories as litigants rush to settle their cases. Mark Zuckerberg is the latest. According to two people briefed on the agreement who requested anonymity to discuss the arrangement, Meta will spend $25 million on damages and legal fees, a remarkable turn of events that coincided with other demonstrations by Zuckerberg of new fealty toward Trump.

The Meta settlement follows a flurry of other legal developments. On November 20, 2024, lawyers for Trump and for Elon Musk’s company X filed a joint letter to the Ninth Circuit Court of Appeals in San Francisco without press release or fanfare. That court was expected to rule on the legal merits of a set of 2021 lawsuits that Trump had filed against X, Facebook, and YouTube, alleging that the companies had unlawfully removed his social-media accounts under government pressure weeks after the January 6, 2021, attack on the U.S. Capitol.

Oral arguments in 2023 had gone poorly for Trump, and many legal observers saw little hope for him. As recently as August 2024, nearly two years after Musk took over the company formerly known as Twitter, X had filed a brief with the Ninth Circuit arguing that Trump’s case lacked merit and that it had been properly dismissed by a lower court.

[Read: Why Trump won’t stop suing the media and losing]

Now, the attorneys told the court in the November letter, no ruling would be needed in the case. “We write to advise the court that the parties are actively discussing a potential settlement,” read the joint letter, which was also signed by lawyers for Trump’s co-plaintiffs.

The attorneys did not explain the sudden shift in strategy. The merits of the case had not changed, but the broader context had: The litigants were no longer adversaries, and the plaintiff was about to become president of the United States. Musk had just spent more than $250 million to help elect Trump, moved into his Palm Beach property, accepted a position as a transition adviser, and was celebrating his new nickname—“first buddy.” The day before the letter was filed, Trump had appeared in South Texas with Musk to watch the launch of Musk’s latest Starship rocket.

In seeking to settle with Trump, X, it turned out, was at the start of a trend. A series of litigants that have fought the newly reinstated president in court—in some cases for years—have now lined up to negotiate. ABC News and its parent company, Disney, settled with Trump in December.

Meta’s CEO, Mark Zuckerberg, who had been threatened with jail by Trump as recently as September, traveled to Mar-a-Lago on January 10 to negotiate a settlement with Trump in the Facebook case, which named Zuckerberg personally as a defendant.The Wall Street Journal reported today that $22 million will go to fund Trump’s presidential library, and the rest will go to legal fees and the other plaintiffs. “We don’t have any comment or guidance to offer,” the Meta spokesperson Andy Stone told me in a text message, before confirming the $25 million settlement.

These agreements stand to give the most litigious president in American history symbolic victories for himself and financial victories for his legacy. The settlement negotiations raise the question of whether Trump is using his new powers to bully his legal opponents into submission, and whether the litigants are seeking to purchase favor as they try to navigate the many regulatory threats from his new government.

Neither X nor the president’s legal team has publicly disclosed the terms of their settlement discussions with Trump, or even confirmed whether the cases have been settled. Ari Holtzblatt, the attorney for X who filed the settlement notice in the Ninth Circuit, declined to comment when reached by phone. The White House did not respond to a request for comment.

Multiple co-plaintiffs with Trump, who filed his 2021 case as class-action lawsuits, also declined to comment this week when reached by The Atlantic. “No comment at this time,” Jennifer Horton, a Michigan schoolteacher who lost her Facebook account after posts that were flagged for COVID misinformation, wrote to me in a text message. “Check back with me later in week. I can’t talk right now,” the radio host Wayne Allyn Root, who lost his Twitter account, wrote in an email.

[Paul Rosenzweig: It’s not amateur hour anymore]

Trump based his 2021 legal crusade against the social-media giants on the assertion that they banned his accounts because of government pressure, in violation of the First Amendment. His co-defendants, including the feminist writer Naomi Wolf, have claimed substantial financial harm—“at least $1 million,” in Wolf’s case—from having their own accounts banned. The companies have argued that Trump has failed to show clear evidence that their decisions were directly dictated by a government power. Trump’s argument also has been complicated by the fact that he ran the federal executive branch at the time that his accounts were shut down; Joe Biden was still president-elect.

Ironically, some legal observers argue that Trump might now be committing the very sin that he accused Democrats of perpetrating against him—using the power of his incoming presidency to pressure private companies to take actions for his personal benefit. They worry that the companies are agreeing to settlements less from fear that they would lose in court than fear that they would win.

“Trump may be doing what he claimed Biden was doing, but he never really did,” Eric Goldman, a law professor at Santa Clara University who has been tracking the X and Meta cases, told me. “If there is a cash settlement, it is because it’s just a staggering economic transaction to buy influence.”

The precedent for such legal surrender was established late last year by ABC News, which Trump sued for defamation; the case concerned comments by the network host George Stephanopoulos that Trump had “been found liable for rape,” when a New York court had found him liable for sexual abuse under state law—though the judge later clarified that the behavior in question was “commonly considered ‘rape’ in other contexts.” ABC News struck a settlement with Trump in mid-December that sent $15 million from its parent company, Disney, to help build his future presidential library and paid $1 million in legal fees, shocking First Amendment attorneys. (Attorneys for Disney had concluded that the case posed substantial risk, The New York Times reported, and that the settlement was a small price to pay to resolve it.)

The Wall Street Journal reported earlier this month that the parent company of CBS News, Paramount Global, was considering a settlement with Trump over his $10 billion claim that 60 Minutes illegally interfered with the election by favorably editing an interview with Vice President Kamala Harris. Paramount is in the process of merging with Skydance Media, a deal that would require approval by Trump appointees. “We have no comment,” the Paramount Global spokesperson Justin Dini told me in a statement.

Trump has also sued Gannett, the owner of The Des Moines Register, alleging consumer fraud for a poll that the Register published before the 2024 election that showed Harris with a lead over Trump in Iowa days before the election. (Trump won the state.) Gannett has signaled that it intends to contest the case in federal court.

The Founding Fathers, for all their foresight, did not concern themselves with the possibility that a future president might use civil litigation to extract money or fealty. The U.S. criminal code does little to prevent the president, who is exempt from its primary conflict-of-interest provisions, from continuing civil litigation or profiting from court cases once he takes office.

[Read: The strategy behind Trump’s policy blitz]

Richard Painter, the chief White House ethics lawyer for President George W. Bush, told me that the current situation gives enormous power to a president who has indicated a willingness to use litigation to get his way. “What law prevents him from basically extorting media companies? Absolutely no law at all,” Painter said. “These suits are going to settle. It is not just the money he is getting from it. We are going to have the media be cowed by the president of the United States.”

The Trump case against YouTube and Sundar Pichai, the CEO of its parent company, Google, filed in 2021 with the X and Meta cases, has been lying dormant in a Northern California courtroom since December 2023, pending the outcome of the Ninth Circuit appeal of the case against X.

Musk’s decision to settle before an opinion now opens the possibility that the YouTube case will be revived unless that company, too, seeks a settlement. Jose Castañeda, a spokesperson for Google, declined this week to comment on the company’s legal strategy.