Meta faces $567 million penalty in New Mexico teen mental health case
New Mexico court orders a multimillion-dollar youth mental health fund and sweeping new safety measures for minors on Meta's platforms
A New Mexico state court has ordered Meta to pay $567 million into a youth mental health remediation fund following the conclusion of a landmark trial.
State Judge Bryan Biedscheid in Santa Fe ruled that Meta created a "public nuisance" by designing addictive product features for young users and failing to protect children from exploitation.
The judge explicitly compared the societal and psychological toll of social media on children to industrial pollution.
As reported by Reuters, the $567 million judgment builds on an earlier $375 million civil penalty issued by a jury in March, bringing Meta’s total financial liability from this specific New Mexico lawsuit to $942 million.
Out of the new $567 million fund, $420 million is earmarked directly for youth mental health treatment services.
While the remaining funds will support educational campaigns, prevention initiatives, screening services, and operational costs over a five-year period.
Stricter protections and safeguards for teen users:
The latest ruling suggests that Meta is required to institute structural protections for young users in New Mexico including restricting for push notifications for minors during school hours (weekdays from 8 a.m. to 3 p.m.) and late-night hours (10 p.m. to 7 a.m.).
It also requires Meta, ensuring teen accounts are set to private by default.
Strengthening controls on adult-to-minor contact, adding safeguards for AI chatbots, and deleting data and accounts belonging to users under 13.
Additionally, court orders Meta to improving AI-driven age-assurance and prediction models, alongside partnering with local schools or child safety groups to establish reporting portals.
Meta's response:
Mark Zuckerberg founded company, Meta platforms has expressed strong disagreement with the ruling and announced plans to appeal, maintaining that it has heavily invested in safety tools and protections for teens online.
More than 40 states and over 1,300 school districts have filed public nuisance lawsuits against social media companies, seeking damages as well as court orders requiring changes to products and practices.
The case was being closely watched amid a growing wave of litigation accusing social media companies of harming young users.
While many lawsuits have been brought by children and families over alleged injuries to individuals, states, municipalities and school districts have also pursued lawsuits seeking broad changes to the industry.
