A New Mexico state court ruled Thursday that Meta must pay $567 million and implement significant platform changes to protect minors, capping a two-phase trial that found the company knowingly caused harm to children’s mental health and concealed knowledge of child exploitation.
The judgment represents the second phase of the case, bringing total penalties against Meta to $942 million after an initial $375 million award determined earlier this year. Judge Bryan Biedscheid ordered the social media company to reduce addictive features, improve age verification systems, limit chatbot interactions with children, and cap daily platform usage for users under 17. Meta must also enhance how it reviews and responds to reports of child sexual abuse and display protective information through banner notifications on Facebook and Instagram.
New Mexico Attorney General Raúl Torrez characterized the ruling as foundational for broader discussions about Big Tech accountability. The state will receive $420 million designated for youth treatment services, with remaining funds allocated to awareness campaigns, prevention efforts, and screening services over five years. Torrez noted that Meta has shown no willingness to accept responsibility or acknowledge its role in addressing harms, and he predicted the company will mount aggressive legal and lobbying efforts against both the state judgment and potential future legislation.
Meta announced it will appeal the ruling and stated in a company statement that it works to maintain platform safety and transparency about challenges in identifying harmful actors. The judgment had minimal impact on investor sentiment, with the company’s stock declining slightly before recovering most losses by day’s end. Meta reported approximately $60 billion in 2025 profits.
The New Mexico case is one of multiple legal challenges confronting the tech company. Federal court proceedings involving four additional states commence later this month in California, part of a multistate lawsuit filed in 2023. Eight states have filed their own court cases, and four families recently sued Meta, TikTok, Snap, and YouTube over alleged harms linked to teenage suicides. Torrez indicated the case highlights inadequacies in a 1970 consumer protection law used in the suit, arguing that federal legislation governing social media liability may require modernization to address contemporary corporate practices.
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