Meta ordered to pay $567 million into abatement fund as remedy to child harms case in New Mexico
A judge in New Mexico ordered Meta to pay $567 million into an abatement fund after a jury ruled the company violated the state’s unfair practices act.
In New Mexico, Meta has been ordered to contribute $567 million into an abatement fund as part of a public nuisance case, furthering its financial burden stemming from alleged harms caused by its apps. This sum is in addition to the $375 million in civil penalties that the company was mandated to pay earlier in the year for violating the state's unfair practices act.
The trial, which commenced in May, aims to determine if Meta's actions constitute a public nuisance, potentially necessitating changes to their products. Judge Bryan Biedscheid emphasized in his ruling that while Meta is not the only entity responsible, its social media platforms play a significant role in the current youth mental health crisis in the state, as supported by substantial evidence.
Most of the $567 million, specifically $420 million, will be allocated to treating individuals affected by the platform and activities aimed at prevention, awareness, screening, assessment, and referral processes. The court's decision hinged on various factors, including testimonies from healthcare professionals, who associated social media use with the state's mental health crisis and highlighted the lack of suitable mental health services for troubled youth.
New Mexico Attorney General Raúl Torrez criticized Meta, stating that the company knew about the negative impacts of its platforms on children but prioritized engagement and profit over their safety. The legal filing affirmed that there is a causal link between social media usage and the youth mental health crisis in New Mexico, with experts testifying to this correlation.
Meta expressed disagreement with the ruling and plans to appeal, asserting that they are committed to keeping users safe and defending their record of protecting teens online. The case is part of a series of legal actions against social media companies, often referred to as "Big Tobacco" moment, as these firms have faced legal consequences for misleading the public about the safety and potential harms of their products in the past.
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