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Meta reached an agreement to settle a landmark case brought by states across the US that accused the tech giant of addicting and harming children with dangerous products, according to a court filing released on Wednesday.

The agreement will requires the company to pay up to $17bn. The company agreed to establish safeguards for teenage users, including daily usage limits and nighttime blocks nationwide in the US.

The jury trial, which took place in federal court in Oakland, California, began with opening statements just last week. California has joined 28 other US states in suing the $1.36tn (£1tn) company for allegedly designing addictive products that lead to children being harmed. The states additionally claimed the social media company regularly collected data on children under the age of 13 without parental permission in violation of federal and state laws.

Legal experts said the outcome of this trial could fundamentally change the way social media apps function for young people.

Meta has denied all allegations throughout the proceedings, saying states are chasing an “outlandish payout”. A spokesperson said on Tuesday that Meta’s safety teams strive to be industry-leading and that Mosseri’s testimony showed the company does research to find ways to improve user experience.

The trial had been expected to last six to eight weeks. The proceedings will be led by attorneys for the states of California, Colorado, Kentucky and New Jersey. The jury’s role is advisory, which means they will give recommendations to the presiding judge, Yvonne Gonzalez Rogers, who will make the final decision on the verdict and damages.

Meta faces thousands of similar US lawsuits brought by families, school districts and other attorneys general. The company lost the first two of those cases to go to trial in March. In the first, the company was ordered to pay nearly $1bn to the state of New Mexico for allowing child sexual exploitation on its platforms; and in the second, it was found liable for deliberately designing addictive products that hooked one young woman and was ordered to pay her more than $4m.

More details soon …