A New Mexico court has ordered Meta to pay an additional $567 million in the second phase of a landmark child safety lawsuit, bringing total penalties to nearly $1 billion. The ruling found Meta's platforms are a "significant contributing cause" of a teen mental health crisis.
The Santa Fe district court issued the judgment on Thursday as part of New Mexico's public nuisance case against Meta. The state alleged that Facebook and Instagram deliberately designed their platforms to addict young users, contributing to widespread mental health problems among adolescents.
This second phase ruling adds to the $420 million Meta was ordered to pay in the first phase of litigation earlier this year. Together, the penalties represent one of the largest settlements against a social media company focused on child safety harms.
New Mexico's lawsuit centered on Meta's algorithmic recommendation systems and features designed to maximize user engagement, arguing these mechanisms disproportionately harm children and teens. The court found sufficient evidence that Meta's practices constitute a public nuisance under state law.
Meta has faced increasing legal pressure over child safety concerns. Multiple states have joined similar litigation, and the company faces ongoing federal scrutiny from the Federal Trade Commission regarding its practices targeting minors.
The company has not yet announced whether it plans to appeal the ruling. Meta previously stated it has made significant changes to protect teens on its platforms, including new parental controls and privacy settings for younger users.
The case reflects broader concerns from regulators and child safety advocates about social media's impact on youth mental health. The American Psychological Association and other health organizations have linked excessive social media use to increased rates of anxiety, depression, and other mental health issues among adolescents.
New Mexico Attorney General Raúl Torrez framed the ruling as a victory for protecting minors. The state had argued that Meta knowingly deployed addictive design tactics while downplaying the documented harms to young users.
The ruling may influence pending litigation in other states pursuing similar public nuisance claims against Meta and other major tech platforms.
Truth Social's parent company is refocusing on its media business and a $6 billion merger with TAE, pulling back from cryptocurrency partnerships while exploring a paid API for premium access to posts.
The US Office of the Comptroller of the Currency has denied Dutch fintech Bunq's application for a national bank charter, citing insufficient clarity on the company's US expansion strategy.
Restart, a gaming media site launched in late 2024 and sponsored by Walmart, has laid off its entire editorial team. The cuts were announced Friday by former editor-in-chief Brandy Berthelson.
Data center operator Switch has filed confidentially for a US IPO that could launch as soon as November. Venture capitalist Ben Horowitz is joining the company's board.