A judge in New Mexico has ordered Meta to pay $567 million into an abatement fund after a jury found the company willfully violated the state's unfair practices act in a child safety case. This ruling is part of a public nuisance case, one of several lawsuits Meta faces regarding alleged harms caused by its social media apps to children [1]. The $567 million fund is in addition to $375 million in civil penalties Meta was previously ordered to pay earlier this year for violating New Mexico's unfair practices act [1].
Of the $567 million, $420 million is allocated specifically for treatment of individuals harmed by Meta's platforms, while the remainder will be used for awareness and prevention, screening and assessment, referrals and coordination, as well as implementation, quality improvement, and evaluation programs [1]. Judge Bryan Biedscheid, in his ruling, stated that Meta's social media platforms are a significant contributing factor to the current mental health crisis among New Mexico's youth, citing substantial evidence and expert testimony presented during the trial [1].
The court considered whether Meta's platforms created a public nuisance in New Mexico, with expert witnesses attributing a shortage of healthcare resources to the impacts of social media on children and describing a lack of adequate mental health programs and services for affected youth [1]. New Mexico Attorney General Raúl Torrez commented that Meta prioritized engagement and profit over the safety of children, and that the judgment holds the company accountable for the damage caused to children, families, and schools in the state [1].
The case is notable as public nuisance claims have traditionally focused on physical world issues, making this internet-based case a significant legal development. The outcome could have broader implications for Meta and other social media companies facing similar lawsuits regarding youth safety and mental health [1].
CONCLUSION
Meta faces a significant financial and reputational setback with the $567 million abatement fund order, in addition to previous penalties, as New Mexico holds the company accountable for its role in the youth mental health crisis. The ruling underscores growing legal risks for social media platforms related to child safety and could influence future litigation in this area.