And where does that money go?

Why the lawyers of course, good sir! That'd how reparations work!

From the AP:

If approved by the court, the deal will stop an avalanche of litigation by states against Meta, although the company still faces lawsuits from individuals and school districts throughout the U.S. For the states, the settlement delivers money for mental-health programs for kids, including after-school or summer activities and digital literacy counselors.

So, basically once they pay this $17b they can't be sued or liable again, right? That's the double jeopardy or whatever?

Public health victory my ass.

These fucking ghouls targeted and exploited children, fostering addictions and neurosis that will follow them for years and now they get to pay some pissy amount and get off whilst implemented the most watered down "controls" which we already know won't solve the issue.

By the states, and for that particular issue, yes. Though I believe "double jeopardy" only applies to criminal trials and not lawsuits.