Santa Fe, New Mexico: In one of the most significant legal setbacks for a social media company, a New Mexico state court has ordered Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, to pay an additional $567 million to address the alleged harms caused to children and teenagers by its platforms.
The ruling comes during the second phase of a landmark lawsuit filed by the New Mexico Attorney General and follows a jury verdict delivered in March 2026, which had already imposed $375 million in civil penalties on Meta for violating the state’s consumer protection laws. With the latest judgment, Meta’s total financial liability in the case has risen to $942 million.
Court Says Meta Created a Public Nuisance
In his ruling, Judge Bryan Biedscheid concluded that Meta’s platform design contributed to a public nuisance by exposing children to addictive platform features and failing to adequately protect them from online harms, including child exploitation. The judge ruled that financial compensation alone was insufficient and ordered both monetary relief and structural changes to Meta’s platforms.
How the $567 Million Will Be Used
According to the court order:
- $420 million will be placed into a fund dedicated to mental health treatment and support services for children and teenagers in New Mexico.
- The remaining $147 million will finance:
- Public awareness campaigns
- Prevention programmes
- Mental health screening services
- Education initiatives
- Other child welfare programmes over the next five years.
Court Orders Major Changes to Facebook and Instagram
Beyond the financial penalty, the judge directed Meta to implement several child safety reforms across its platforms, including:
- Stronger age-verification mechanisms
- AI-powered systems to better identify underage users
- Removal of personal data collected from users under 13 where applicable
- Measures to reduce addictive platform features
- Restrictions on notifications and engagement tools for younger users
- Improved reporting systems for child exploitation and abuse
- Enhanced transparency regarding online safety features
- Periodic compliance reporting to the court and state authorities.
The ruling is regarded as one of the first court orders requiring a major technology company to make substantive operational changes specifically aimed at protecting children.
Background of the Case
The lawsuit was filed by New Mexico Attorney General Raúl Torrez, who alleged that Meta knowingly designed Facebook and Instagram in ways that encouraged excessive use among minors while failing to adequately address risks related to mental health and child exploitation.
Following weeks of testimony from mental health experts, former Meta employees, educators, law enforcement officials and technology specialists, a jury in March found Meta liable for misleading consumers and violating New Mexico’s consumer protection laws, resulting in the earlier $375 million penalty.
Meta to Appeal
Meta has rejected the court’s findings and announced that it will appeal the ruling.
The company maintains that it has invested billions of dollars in online safety, artificial intelligence, parental supervision tools and age-appropriate protections, arguing that many of the court-ordered measures are either impractical or raise constitutional concerns.
Potential Global Impact
Legal experts believe the New Mexico judgment could become a landmark precedent for similar lawsuits pending across the United States and elsewhere. More than 40 U.S. states and over 1,300 school districts have filed legal actions against Meta over the alleged impact of its platforms on young users’ mental health and online safety.
The ruling significantly increases regulatory pressure on major social media companies and may influence future legislation governing child safety, platform accountability and the design of social media products worldwide.