Investing.com -- Meta Platforms Inc shares rose more than 4% in pre-market on Wednesday after the company reached a settlement with states over claims that its platforms harmed children, according to a Reuters report citing a court filing.

The settlement requires Meta to pay a maximum of $16.68 billion to states as part of the agreement, court documents show. The company denied wrongdoing in agreeing to the settlement, according to the papers.

Under the agreement, Meta must implement nationwide changes for teen users of Instagram and Facebook. The court judgment requires the company to establish default daily limits and nighttime blocks for teenage users of its social media platforms.

The settlement will resolve all state claims, in federal and state courts across the country.

The case involved 29 U.S. states and centered on allegations that Facebook and Instagram were deliberately designed to maximize engagement among children and teenagers. The states claimed Meta had internal knowledge of potential mental-health and safety risks associated with its platforms.