Meta Ordered to Pay $942 Million in New Mexico Child-Safety Lawsuit

A New Mexico judge has ordered Meta Platforms to pay over $900 million and impose restrictions on the time young users can spend on its apps, substantially boosting the cost of the landmark child safety verdict. The judge mandated the creation of a $567 million abatement fund alongside the $375 million in civil penalties that a jury had previously ordered.

In addition to these measures, Meta must implement safety features such as limiting underage users' time on Facebook and Instagram, hiding the number of "likes" by default, and revealing to users the potential risks associated with the platforms.

State Judge Bryan Biedscheid deemed the abatement fund creation "necessary due to the wide-ranging impacts of the harm and the complex nature of the remedy." The fund's dollar amount falls slightly short of the $779.5 million sought by the state's attorneys. Meta expressed disagreement with the ruling and plans to appeal, while the next trial, initiated by four state attorneys general, is set to begin jury selection in Oakland, California, the following week.

The lawsuit, which alleges more than $1 trillion in damages, was filed by the states involved in this case, which resulted in a judgment of approximately $1 billion for New Mexico alone. If this decision stands and sets a precedent nationwide, the financial implications could be significant. Despite the ruling, Meta's stock has seen a 1.5% increase so far today, with investors seemingly unalarmed about the potential consequences.