A New Mexico state court has ordered Meta to pay $567 million into a teen mental health fund and to modify its platform operations for young users after determining the company contributed to harming children’s well-being. Judge Bryan Biedscheid in Santa Fe found that Meta had created a public nuisance in New Mexico, supporting the claims of Attorney General Raul Torrez, a Democrat. Torrez accused Meta of designing addictive products targeting teens and neglecting to safeguard children from sexual exploitation on its platforms.
This ruling follows a separate verdict five months prior, where a New Mexico jury mandated Meta to pay $375 million for violating consumer protection laws by misrepresenting Facebook and Instagram’s safety for youth. The case has drawn intense scrutiny amid a rising number of lawsuits against social media firms accused of damaging young users. While many suits involve individual injuries reported by children and families, government entities like states, municipalities, and school districts have also initiated legal actions seeking system-wide reforms.
Over 40 states and more than 1,300 school districts have filed public nuisance cases against social media companies, demanding damages and court orders to change platform practices. Under the court’s order, Meta must establish youth safety measures such as monthly limits on teen usage of Facebook and Instagram, restrictions on notifications, tighter monitoring of adult contact with minors, safeguards for AI chatbots, and improved review processes for child sexual abuse reports, with these measures in effect for five years.
Meta announced its intention to appeal and stated it is actively working to identify and remove harmful content from its platforms. “We remain confident in our efforts to protect teens online and will continue to defend ourselves against misrepresentations,” the company said.
Attorney General Torrez criticized Meta for prioritizing profit over child safety and called the ruling a pioneering step for the industry. “This isn’t just a verdict against one company; it’s a blueprint,” Torrez said. “Other states and countries facing similar issues now have a clear path to follow.”
In investigations last year, Reuters uncovered internal documents revealing Meta’s AI chatbots could engage children in romantic or sensual conversations, raising concerns about the platform’s role in facilitating potentially harmful interactions. In the recent ruling, the court ordered Meta to prevent minors in New Mexico from engaging in sexualized or romantic interactions with AI chatbots and to stop adults from using chatbots to simulate such conversations with children.
The lawsuit, heard over three weeks of testimony without a jury, centered solely on whether Meta’s platforms constituted a “public nuisance” under New Mexico law. Traditionally, public nuisance claims address conduct that endangers public health or safety—such as pollution or blocked roads—yet states have increasingly applied them to issues like tobacco, opioids, climate change, vaping, and AI.
Judge Biedscheid emphasized that just as pollution harms the public’s right to clean air, Meta’s impact on children extends beyond its platforms into the broader society, creating societal and societal burdens. Meta contended it could not be deemed a public nuisance since it did not interfere with a “public right” like air or water access, and argued that other social media apps used by teens diminish its responsibility. The company also challenged the proposed remedies as technologically unfeasible and potentially damaging to its business, including claims that some modifications might infringe on First Amendment rights or violate Section 230 of the Communications Decency Act, which generally shields platforms from liability.
While some requested measures were rejected to prevent infringement on free speech and legal protections, the court mandated specific safety actions, including the limits and restrictions mentioned earlier. The ruling precedes Meta’s upcoming trial in Oakland, California, where a coalition of 29 states accuses the company of intentionally designing its platforms to addict children and misrepresenting safety claims—a case that could lead to substantial damages.
Meta is also defending a separate case initiated by Tennessee in July. The company has warned investors that ongoing legal and regulatory pressures in the US and Europe concerning youth-focused social media could significantly impact its financial results.