Meta Ordered to Pay $942 Million to Address Harm to Kids from Social Media

Dow Jones
Aug 07

A New Mexico judge ordered Meta Platforms to pay more than $900 million after a jury found it failed to protect young people, significantly increasing the cost of the landmark verdict against the Facebook and Instagram parent.

The judge said Thursday that Meta must create a new $567 million abatement fund in addition to civil penalties of $375 million that a jury previously ordered. It also said the company would have to enact certain safety features, like defaulting to hiding the number of "likes" on photos for all underage users and publicly disclosing the risks of using its platforms on its website.

The judge said the creation of the fund, aimed at rectifying harms caused by the Facebook parent's social media apps, was "necessary, due to the wide-ranging impacts of the harm and the complex nature of the remedy."

Meta did not immediately comment on the judge's decision. The dollar amount of the abatement fund was slightly smaller than the $779.5 million that lawyers for the state sought.

The Thursday ruling from state Judge Bryan Biedscheid stems from a lawsuit brought by Attorney General Raúl Torrez, accusing the company of allowing young users to see sexually explicit content and be easily lured by predators on the apps. A jury found in March that Meta willfully violated state consumer-protection laws.

Meta is facing thousands of lawsuits from state attorneys general, school districts and individual plaintiffs that allege the company prioritized growth over the safety of its underage users. The New Mexico case was the first to test questions about whether social-media companies should be held responsible for content on their platforms.

A Los Angeles jury subsequently found that Meta and YouTube were liable in the case of a young woman who said excessive use of the products led to mental-health problems. Last week, the company said legal proceedings in the second quarter alone cost it $2.4 billion.

Of the more than 40 states suing Meta over child-safety concerns, New Mexico is the first to have its suit go to trial. A trial in Tennessee is currently under way and the next trial, brought by four state AGs, begins jury selection in Oakland next week.

 

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