Meta ordered to pay $567M in New Mexico child safety case

A New Mexico judge on Thursday ordered Meta, the parent company of Facebook, Instagram and WhatsApp, to pay US$567 million to address claims that the tech giant created a “public nuisance” and harmed children. The ruling directs the funds toward youth mental health programs and requires the company to make changes to its platforms, according to court documents.

The judgment follows a separate March jury verdict in which Meta was ordered to pay US$375 million in damages after being found liable for endangering children by making them vulnerable to predators on its platforms. Thursday’s order, issued by a state district judge, represents the latest legal setback for the social media conglomerate over its handling of minors.

Background of the Lawsuit

The case stems from a 2023 lawsuit filed by New Mexico Attorney General Raul Torrez, who accused Meta of failing to protect children from online dangers. Prosecutors argued that Meta’s algorithms actively directed adults toward content posted by teenage users, while the company concealed internal findings about the risks to young people.

During closing arguments, prosecutor Linda Singer told jurors that Meta had “prioritized engagement over safety” and that its platforms had become hunting grounds for predators. The state’s complaint alleged that the company’s design choices created a “public nuisance” by enabling harmful interactions and failing to implement adequate safeguards.

Meta has consistently denied these allegations, maintaining that it invests heavily in safety tools and moderation systems. The company has also pointed to its parental controls and age verification features as evidence of its commitment to protecting younger users.

Meta's Response and Appeal

In a statement Thursday, Meta said it disagrees with the ruling and will appeal. “We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content,” the company said.

The appeal process could take months or even years, delaying the financial payout and any mandatory platform changes. Legal experts say the case could set a precedent for how social media companies are held accountable for user safety in the United States.

New Mexico has been at the forefront of such litigation, with Attorney General Torrez aggressively pursuing tech firms over consumer protection issues. Thursday’s ruling is seen as a significant win for the state, though the ultimate outcome remains uncertain pending appeal.

Broader Implications

The decision adds to mounting pressure on Meta and other social media platforms from lawmakers, regulators, and advocacy groups concerned about the impact of social media on adolescents. Studies have linked heavy platform use to depression, anxiety, and other mental health issues among young people.

Meta has already faced several class-action lawsuits from states claiming its platforms are addictive and harmful to minors. In addition to monetary penalties, courts are increasingly ordering structural changes to app design, such as disabling algorithmic recommendations for minors or enhancing default privacy settings.

Thursday’s order—if upheld on appeal—would require Meta to implement unspecified changes to its apps and funnel hundreds of millions into youth mental health initiatives. The exact nature of these changes has not yet been made public, but court filings indicate they could involve altering content recommendation systems to prevent adults from discovering minors.

For now, Meta says it will continue to fight the ruling. “We remain committed to working with states and stakeholders to enhance online safety for young people,” the company said. The appeal will likely hinge on whether the state proved that Meta’s actions constituted a public nuisance under New Mexico law, a legal theory that has been used successfully against opioid manufacturers and others.

As the legal battle continues, the case against Meta may inspire similar actions in other jurisdictions, reshaping the regulatory landscape for social media giants.