Meta Ordered to Pay USD 375 Million in Landmark New Mexico Child Safety Lawsuit

Santa Fe, March 25: A New Mexico jury has ordered Meta Platforms to pay USD 375 million  in civil penalties, finding that the social media giant violated state consumer protection laws. The verdict, delivered on March 24, 2026, concludes a six-week trial in which the state’s attorney general accused the company of misleading the public about the safety of Facebook, Instagram, and WhatsApp while failing to protect children from sexual exploitation.

The jury took less than a day to deliberate, ultimately finding that Meta engaged in unfair, deceptive, and unconscionable trade practices. The state had originally sought damages exceeding USD 2 billion, but the award of USD 375 million marks a significant legal precedent as the first time a jury has ruled against the company on these specific safety claims. Meta CEO Mark Zuckerberg Denies Allegations of Targeting Underage Users During Landmark Youth Social Media Addiction Trial.

Findings of Deceptive Practices and Exploitation by Meta

The lawsuit stemmed from a 2023 undercover operation led by New Mexico Attorney General Raúl Torrez. Investigators created social media accounts posing as children under the age of 14, which subsequently received sexually explicit material and were contacted by adults seeking illicit content. The state argued that Meta’s internal documents showed the company was aware of these risks but failed to implement basic safety measures like age verification.

The jury identified 75,000 specific violations of the state's consumer protection law, awarding USD 5,000 for each instance. Prosecutors successfully argued that Meta’s platforms were designed to maximise engagement through features like infinite scroll, despite evidence that such designs could foster addictive behaviour and expose young users to predators.

Meta to Appeal as Legal Challenges Mount

In a statement following the verdict, a Meta spokesperson expressed disagreement with the jury’s findings and confirmed the company’s intention to appeal. The tech giant maintained that it has "robust disclosures" and "tireless efforts" in place to remove harmful content, arguing that it did not intentionally mislead the public.

The company had previously attempted to dismiss the case by citing Section 230 of the Communications Decency Act, which generally protects websites from liability regarding user-generated content. However, the New Mexico judge rejected this argument, allowing the state to proceed with claims that focused on the company’s own business practices and platform design.

Second Phase of Trial to Address Platform Changes

While the financial penalties have been set, the legal battle is not over. A second phase of the trial is scheduled for May 2026, where Judge Bryan Biedscheid will hear claims regarding whether Meta’s operations constitute a "public nuisance." During this non-jury phase, Attorney General Torrez is expected to request court-ordered changes to Meta’s platforms. Meta Layoffs Lawsuit: Former Senior Director Nicolas Franchet Sues Mark Zuckerberg’s Firm for Age Discrimination in 2025 Job Cuts.

These requested changes include the implementation of more effective age verification tools and more aggressive removal of predatory accounts. This verdict comes as Meta faces thousands of similar lawsuits nationwide concerning youth mental health and platform addiction, with another major trial currently underway in Los Angeles.

(The above story first appeared on LatestLY on Mar 25, 2026 09:59 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).