This article first appeared on GuruFocus.
Meta Platforms (NASDAQ:META) slipped 0.21% intraday after a New Mexico judge ordered the company to pay an additional $567 million and strengthen child-safety features on its apps. The order brings total penalties in the case to $942 million, following a $375 million jury award in March. The muted stock reaction could reflect how small the sum is against Meta’s roughly $1.5 trillion value, though the ruling could open the door to similar suits.
Judge Bryan Biedscheid found Meta to be a “public nuisance,” ruling that its platforms are a significant contributor to a youth mental-health crisis in the state. The case accused Meta of exposing children to harmful content. About $420 million of the penalty will fund treatment programs, and the ruling requires Meta to police accounts held by children under 13 and to bar minors from romantic or sexualized interactions with its AI chatbots.
Attorney General Raul Torrez called the ruling “a blueprint.” Meta said it disagreed and would appeal. A separate case in Los Angeles found Meta and Alphabet (GOOGL) liable in March.
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