New Mexico Wins $375M Verdict Against Meta, Could Force Platform Changes

A New Mexico jury awarded the state $375 million after finding Meta liable for endangering children through sexual exploitation on its platforms. The case now moves to a second phase where a judge could order changes to how Facebook and Instagram operate for teenage users.

While discussions about making social media safer for young people typically focus on Washington D.C. and European Union headquarters, a courtroom in Santa Fe, New Mexico now holds significant influence following a major legal victory.

A jury on Tuesday determined that Meta violated New Mexico’s consumer protection laws and put children at risk by allowing sexual exploitation to occur on its social media platforms, resulting in a $375 million judgment against the tech giant. The case will now proceed to a second phase scheduled for May, where Judge Bryan Biedscheid will conduct a bench trial regarding the state’s allegations that Meta created a “public nuisance” that damaged residents’ health and safety. This upcoming proceeding could lead to court-mandated modifications to Facebook, Instagram and other applications popular with teens.

The authority to require product modifications distinguishes New Mexico’s lawsuit from thousands of individual lawsuits filed against Meta claiming its services caused harm, including a significant social media addiction case in Los Angeles where Meta and Google suffered defeats this week.

New Mexico’s victory also strengthens other states’ efforts to force tech company reforms while federal action remains stalled, including proposed legislation requiring stronger age verification systems and limiting algorithmic content feeds for minors.

During an interview, New Mexico Attorney General Raúl Torrez outlined numerous potential modifications to Meta’s products that the state might seek. These include requesting court orders to limit content types recommended to minors, reduce frequency and timing of notifications encouraging teenagers to log in, eliminate “infinite scroll” features for children, and strengthen age verification processes.

The state also plans to propose measures addressing harm already caused to New Mexico residents by Meta’s products.

“It’s not out of the realm of possibility that we ask for and receive an even greater award” during the trial’s second phase compared to the first, Torrez stated. “But my perspective has been to focus on the changes of the product itself.”

Torrez, a Democrat, indicated the state would likely request that Biedscheid assign an independent monitor or special master to oversee Meta’s compliance with New Mexico consumer protection law for several years.

“I’m not sure at the initial stage we’re going to be articulating a super specific path in terms of what the court would do,” he explained.

State attorneys general have increasingly utilized public nuisance law, which permits governments to sue over conduct they claim unreasonably interferes with public health or safety, to target industries accused of causing widespread social harm, including opioid manufacturers.

Despite potential success, New Mexico’s campaign faces significant challenges ahead. Meta spokesperson Andy Stone announced the company would appeal the jury’s decision and “we will continue to defend ourselves vigorously.”

The appeal will likely challenge Section 230 of the Communications Decency Act, federal legislation that has historically protected tech companies from liability regarding user-created content.

Stone pointed out that Meta has implemented numerous safety improvements to its platforms since the lawsuit began – some overlapping with features Torrez seeks. The company has introduced specialized accounts for teen users with nighttime notifications disabled by default, added age verification tools and announced plans to filter inappropriate content for minors.

Meta recently announced it was eliminating end-to-end encryption from Instagram’s messaging feature. Although Meta cited low usage as the reason, child safety advocates praised the change.

The company confirmed it would maintain encrypted messaging on WhatsApp, while remaining silent about Facebook Messenger plans.

Max Willens, an eMarketer analyst, expressed doubt that New Mexico could successfully force changes to content recommendation systems central to Facebook and Instagram operations.

“Algorithm modification is not a likely remedy, but it is among the list of possible changes that could be required,” he stated. “The second phase of this trial may be more consequential to social media platforms than the first.”

Court-ordered remedies prove even more challenging for individual plaintiffs, noted Matthew Bergman from the Social Media Victims Law Center, who represents the plaintiff in the Los Angeles case alleging Meta, YouTube and other social media companies negligently designed products that harmed users’ mental health.

On Wednesday, a jury awarded the woman $6 million combined damages against Meta and Google, widely considered a test case for thousands of similar harm allegations.

Torrez acknowledged that regulating global social media platforms’ youth policies through state courts was “probably not the most efficient” approach to addressing social media product design, but said he refused to “wait any longer for a system to deliver what it should have 15 years ago.”

He noted that while New Mexico’s case centers on child predation and grooming, dozens of state attorneys general pursuing cases against Meta for broader youth mental health damage also seek to force product changes. Since the verdict, Torrez said his office has received inquiries from other states and international regulatory agencies.

“I have an expectation that Meta is in for a wave of litigation,” he said. “I’ve been real clear with colleagues that they could set up undercover investigations on these platforms right now and yield the same results.”