A New Mexico court issued a ruling requiring Meta to contribute $567 million toward addressing mental health impacts on children, according to the judgment handed down on Thursday. This decision follows the company’s loss in the initial phase of the trial that concluded in March, when a jury determined Meta had knowingly damaged children’s mental health and concealed knowledge of child sexual exploitation occurring on its platforms, resulting in the maximum penalty of $375 million. The combined financial obligation now totals $942 million.
Judge Bryan Biedscheid allocated the funds with specific priorities: $420 million will support treatment services for young people within the state, while the remainder will address prevention initiatives, awareness campaigns, screening services, and related expenses over a five-year period. The March trial marked a significant legal milestone as the first instance in which Meta faced liability for activities conducted on its platform. The case built upon a 2023 investigation that documented how Facebook and Instagram functioned as venues for child sex trafficking operations.
Beyond financial penalties, the court imposed operational changes requiring Meta to enhance protective features on both Facebook and Instagram through improved informational displays and user education. The company must implement age-verification improvements using artificial intelligence technology and develop specialized age-detection systems for users under 13 within two years. Meta will also be required to establish reporting mechanisms with schools and child safety organizations to identify potentially underage users and delete collected personal information from children under 13. Progress reports on compliance must be submitted twice yearly.
The court rejected requests for certain age-verification mandates, citing federal privacy legislation that restricts age-verification enforcement for children under 13 and concerns about competitive inequities. Meta stated its disagreement with the ruling and announced plans to appeal. The financial penalties represent a fraction of the company’s approximately $60 billion annual profit but underscore mounting legal pressure, as Meta faces additional ongoing litigation in Tennessee and California addressing alleged harms to adolescents.
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