- A court ordered Meta to pay $942 million
- The reason was harm to children from Facebook and Instagram.
- The funds will go toward setting up a fund for psychological support and prevention programs.
A New Mexico state court ordered Meta Platforms to pay $942 million, introduce new restrictions for underage Facebook and Instagram users, and fund programs to address the harm caused by social media, WSJ reports. The ruling came after a jury previously found that the company knowingly violated the state’s consumer protection laws.
Bryan Biedscheid, New Mexico Judge, ruled that Meta must create a dedicated $567 million fund to address the harm social media has caused to children. This amount is in addition to a previously imposed $375 million penalty, which a jury set in March 2026.
The company’s total financial obligations amount to $942 million.
In addition to the payments, the court ordered Meta to implement a range of new safety measures for underage users in New Mexico. These include:
- Limits on how much time children can spend on Facebook and Instagram
- Hiding the number of “likes” under photos by default
- Informing users about the potential risks of using the platforms
As a reminder, the company previously announced it would use AI to determine users’ age based on physical traits, including height and bone structure.
“The creation of the fund, aimed at rectifying harms, is necessary due to the wide-ranging impacts of the harm and the complex nature of the remedy,” Judge said.
The bulk of the new fund — about $420 million — will be allocated to treatment and psychological support for young people. The rest will be used for prevention programs, awareness-raising, early detection services, and other measures over the next five years.
The lawsuit against Meta was filed by New Mexico Attorney General Raúl Torrez. He accused the company of allowing minors to view sexually explicit content and failing to adequately protect them from online predators.
In March 2026, a jury concluded that Meta intentionally harmed children’s mental health and concealed information about the risks of sexual exploitation of minors on its platforms.
Meta Will Appeal the Ruling, and Prosecutors Called It a Precedent
Meta said it disagrees with the court’s decision and intends to file an appeal.
“We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts,” the company said.
At the same time, Raúl Torrez, New Mexico Attorney General, called the ruling an important victory.
“New Mexico led the way in the courtroom. Now other states, and other countries confronting the same crisis, have a roadmap they can follow,” he said.
Separately, he added:
“Today’s decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online.“
Meta currently remains a defendant in thousands of lawsuits from state attorneys general, school districts, and individual families, who accuse the company of prioritizing business growth over children’s safety.
The next major trial, stemming from lawsuits filed by four states, will begin as soon as next week in California. According to court filings, the combined claims in the case exceed $1 trillion.
The nearly $1 billion court ruling is another blow to Meta after its March drop in market capitalization of about $310 billion amid legal risks and massive investments in artificial intelligence development.
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