Headline: Meta Ordered to Pay $567 Million in New Mexico Child Case

Meta Platforms has been ordered by a New Mexico state court to pay $567 million into a fund dedicated to addressing harms suffered by children and teenagers after the court found the company's platforms contributed to a public nuisance by harming young users' mental health and facilitating child sexual exploitation. The ruling follows a jury verdict earlier this year that imposed a separate $375 million civil penalty, bringing the company's total financial liability in the case to $942 million. Judge Bryan Biedscheid also ordered Meta to adopt a range of youth safety measures affecting Facebook and Instagram, including stronger age verification, limits on notifications and screen time for minors, enhanced protections against online predators and artificial intelligence-powered safeguards. Meta said it plans to appeal the decision.

The lawsuit was brought by New Mexico Attorney General Raúl Torrez, who argued that Meta knowingly designed products that encouraged excessive use by young people while failing to adequately protect children from harmful content and sexual exploitation. The court concluded the case centered on the company's product design and business practices rather than user-generated content, rejecting Meta's argument that it was shielded from liability under Section 230 of the Communications Decency Act. As part of the ruling, the court ordered the company to establish a five-year abatement fund, with most of the money directed toward treatment services for young people and the remainder supporting prevention programs, public education and mental health screening.