New Mexico Judge Orders Meta to Pay $567 Million

A Santa Fe judge ordered Meta Platforms Incorporated to pay $567 million into an abatement fund to address a youth mental health crisis in New Mexico. Chief District Court Judge Bryan Biedscheid ruled that the company's platforms contributed to a public nuisance, finding them a significant contributing factor to the mental health crisis among the state's youth.

Of the award, $420 million is earmarked for treatment services, while the remaining funds will support awareness, screening, and prevention over five years. This payment follows a previous jury verdict that imposed $375 million in civil penalties for violations of the New Mexico Unfair Practices Act. The legal action originated from a 2023 lawsuit filed by New Mexico Attorney General Raúl Torrez.

The court mandated several product changes for Facebook and Instagram, including private-by-default settings for users under 18 and a monthly usage cap of 90 hours. Meta must eliminate push notifications during school hours and late at night, improve AI-driven age-assurance tools, and delete unverified accounts for users under 13. The company is also required to develop a prediction model for underage users within two years and partner with schools to create a reporting portal for suspected underage accounts.

Meta stated it disagrees with the ruling and intends to appeal, maintaining confidence in its record of protecting teenagers online.