A New Mexico court has mandated that Meta, the parent company of Instagram and Facebook, pay $567 million to rectify the harm its platforms have incurred on young users. The ruling comes in the second phase of what is considered a landmark trial.
Judge Bryan Biedscheid specified in his Thursday ruling that $420 million from this amount will fund treatment services for the youth. The remaining funds will address awareness initiatives, prevention, and screening services over the next five years.
This penalty is in addition to the $375 million in civil penalties assigned to Meta in March. Jurors concluded that Meta deliberately impacted children’s mental health negatively and hid information about the exploitation of children on its platforms.
During the trial’s second phase, prosecutors requested changes at Meta to control addictive features and improve age verification. Amplified oversight and enhanced default privacy settings were also proposed to prevent exploitation.
The cumulative sum ($942 million) Meta has to pay is minor relative to its 2025 annual profit of approximately $60 billion. Despite the ruling, Meta’s stock dropped less than 0.5%, settling at $589.44 in after-hours trading.
New Mexico Attorney General Raúl Torrez stated that the ruling underscores accountability for companies whose products put children at risk. “Today’s decision supports all parents concerned about social media’s impact on their children and upholds the right for a safer online upbringing for kids,” said Torrez.
Meta has signaled plans to contest the ruling. The company assured ongoing efforts to maintain user safety on its platforms, emphasizing its transparency about challenges in identifying and eliminating harmful content. It remains confident in its record of protecting teens online.
Meta Platforms to Undergo Changes
The judge instructed Meta to include informational screens and banners that detail protective features and tools against inappropriate content. These features must be prominently displayed and reviewed by the state. A campaign to educate users in New Mexico will also be launched.
Federal privacy laws limit the ability to impose age-verification methods for children under 13. The Children’s Online Privacy Protection Act prohibits Meta from collecting personal data from children and using it to verify ages. Applying these measures solely to Meta would be unfair without all social media platforms following suit.
The court ordered Meta to continue refining its age assurance tools within New Mexico. The company must develop an age prediction model for users under 13 within two years. Meta will also be responsible for requesting age verification for users it estimates to be under 13, and treat them accordingly until age verification is completed.
In collaboration with schools or child safety organizations, Meta must set up a reporting portal for underage users. Additionally, the company must delete information collected from users deemed under 13.
Twice a year, Meta is required to report its compliance progress with these measures.
Upcoming Trials for Meta
This month, Meta is preparing for a significant trial in California. The company will face accusations from four of the 29 states suing it under a federal multi-district lawsuit initiated in 2023. States claim Meta exacerbated the youth mental health crisis by making Instagram and Facebook more addictive for children.
Some states, including Tennessee, have initiated their lawsuits. Recently, Meta, alongside TikTok, Snap, and YouTube, faced lawsuits from families of teenagers who committed suicide. They attribute these tragedies to prolonged harm from using the platforms.
Laura Edelson from Northeastern University remarked that the New Mexico decision might be the first of many challenges for Meta. Although banning social media in the U.S. is unlikely, states are finding ways to moderate companies’ influence on users.
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