The verdict — the first of its kind in the US — exposes growing legal risk for platforms that market to young consumers, with a bench trial for injunctive relief due in May and a separate mass-tort case against Meta and YouTube still before a Los Angeles jury.
On March 24, after two years of litigation, the jury in State of New Mexico v. Meta Platforms ordered Meta to pay $375 million in civil penalties to the state, finding that the company violated New Mexico’s Unfair Practices Act by making false statements about platform safety and engaging in “unconscionable” trade practices that exploited the vulnerabilities of children, as the New Mexico Department of Justice has itself announced.
The state had asked for damages in excess of $2 billion, calculated as the maximum civil penalties for the 207,800 monthly teenage users in its territory.
The case, however, is not over. New Mexico will be arguing its public-nuisance case and seeking injunctive relief, with separate damages, in a bench trial to begin on May 4. Meanwhile, Meta has made a statement to CBS News through spokesman Andy Stone: “We respectfully disagree with the verdict and will appeal.” According to Stone, Meta is “confident in our record of protecting teens online.”
This appears to be the first time a US state alleging harm to children has prevailed in court over a Big Tech company, and more than 40 state attorneys general have filed similar lawsuits against Meta, according to NPR and others.
This is separate from the mass-tort multidistrict litigation against Meta and YouTube (Google/Alphabet) in Los Angeles, over allegations of deliberate addictive design. The jury in that case is now deliberating.
