A New Mexico state court on Thursday ordered Meta Platforms Inc. to pay $567 million and implement sweeping protections for teen users on Facebook and Instagram, concluding that the company’s products contributed to a youth mental health crisis and created a public nuisance. The judgment, issued by Judge Bryan Biedscheid, follows a March jury verdict that ordered Meta to pay $375 million for violating the state’s Unfair Practices Act, bringing the company’s total liability in the case to nearly $942 million.
The ruling stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez in 2023, which alleged that Meta designed addictive products and failed to protect children from sexual exploitation. The court’s order requires Meta to implement a series of changes over the next five years, including monthly limits on teens’ use of Facebook and Instagram, restrictions on notifications, tighter controls on adults contacting minors, safeguards for AI chatbots, and enhanced reviews of child sexual abuse reports.
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Court finds Meta created a ‘public nuisance’
In his ruling, Judge Biedscheid compared the harms caused by Meta’s platforms to pollution escaping a factory. “Just as noxious pollution produced by the factory can harm the common public right to reasonably clean air, the harmful effects of Meta’s platforms on children do not stay contained by its platforms,” he wrote. The judge said those effects extend into the real world, creating broader burdens for children, families, schools, hospitals, and law enforcement.
This second trial, which did not involve a jury, focused specifically on whether Meta’s platforms constituted a public nuisance under New Mexico law. The first trial, which concluded in March, resulted in a $375 million jury award for violations of the state’s Unfair Practices Act. Meta has said it disagrees with the ruling and plans to appeal.
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Meta vows to appeal, cites safety record
In a statement to FOX Business, a Meta spokesperson said: “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. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”
The company’s appeal will likely focus on the legal standard for public nuisance, a claim that has been used in a wave of lawsuits against social media companies. More than 40 states and over 1,300 school districts have filed similar public nuisance lawsuits, seeking damages and court orders requiring product changes.
Attorney General calls ruling a ‘blueprint’ for other states
Attorney General Torrez hailed the decision as a landmark victory. “For years, Meta knew its platforms were harming New Mexico’s kids, from feeding a youth mental health crisis to connecting predators with children, and it chose engagement and profit over their safety,” he said. “Today, Meta is paying for that choice.”
Torrez said the $567 million will fund New Mexico’s abatement plan, and he called the ruling a “blueprint” for other states seeking to pursue similar litigation. “For the first time, a court has ruled that a social media giant can be held liable for building products that endanger children and has ordered the structural changes needed to fix it,” he added. “Now other states, and other countries confronting the same crisis, have a roadmap they can follow.”
The case is part of a broader legal and regulatory push against social media platforms over their impact on young users. Lawmakers in several states have introduced or passed legislation requiring age verification and parental consent for social media use, while federal efforts have stalled. The New Mexico ruling could provide a new legal avenue for plaintiffs seeking to hold platforms accountable without waiting for new legislation.
For Meta, the financial impact of the New Mexico judgment is relatively modest compared to its market capitalization, but the structural changes ordered by the court could set a precedent that influences how the company operates nationwide. The company’s stock was trading at $589.90 on Thursday, up 0.19%.
As the appeal process unfolds, the case will be closely watched by legal experts, public health advocates, and other state attorneys general. The outcome could shape the future of social media regulation and the extent to which platforms can be held liable for the content and features they design. Investors and users alike will be monitoring whether other courts follow New Mexico’s lead.
This article is for informational purposes only and does not constitute financial or legal advice. The legal and regulatory sector for social media companies is evolving and uncertain.
