Meta ordered to pay $567 million in New Mexico child case

Meta has been ordered to pay $567 million by a New Mexico court for failing to warn the public about dangers its social platforms posed to children. The judgment adds to the $375 million the company was ordered to pay in March during the first phase of the same trial, bringing the two awards to $942 million.

Judge Bryan Biedscheid wrote that New Mexico teenagers are experiencing a mental health crisis and found that “Meta’s platforms are a significant contributing cause to the crisis.” The ruling also classified Facebook’s platforms as a “public nuisance,” comparing Meta to a factory whose advertising and other content are products, while the psychological harm and sexual exploitation of children are pollution that must be removed.

Where the $567 million will go

The award will finance programs for:

• Awareness and prevention
• Screening and assessment
• Referrals
• Treatment, which will receive the largest share at $420 million

The court also imposed changes to how Meta handles accounts belonging to users under 18. Those accounts must be private by default, and their Friends lists must be limited to other users under 18. Teen accounts must not appear in search results or recommendations.

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The order comes as Meta faces broader legal scrutiny over how its products affect minors. In March, a California jury found Meta and Google parent Alphabet liable in a separate lawsuit brought by a 20-year-old woman who alleged that Instagram and YouTube were designed to be addictive to children. A separate California case resulted in a $6 million verdict against Meta and Google, according to our previous coverage.

New Mexico Attorney General Raúl Torrez called the ruling a victory for parents concerned about social media’s effects on children.

“This case has always been about protecting children, standing up for families, and making sure that one of the world’s largest technology companies cannot profit from practices that endanger young people without consequence,”

Meta rejected the ruling and said it would appeal. The company said it works to keep users safe, has been transparent about the difficulty of identifying bad actors and harmful content, and remains confident in its record of protecting teens online.

Instagram’s teen accounts and other child-focused controls were introduced only in the past few years, according to CNET. The reporting does not establish whether the ordered settings have already been implemented or when the appeal will be resolved. For now, the ruling is substantial not because it adds another voluntary safety feature, but because it combines nearly $1 billion in penalties and mandated product changes—while Meta’s appeal leaves the final outcome unsettled.