A New Mexico court has ordered Meta, the parent company of Facebook and Instagram, to pay a total of $942 million after finding the social media giant liable for harming children's mental health and failing to adequately address child sexual exploitation on its platforms.

The latest ruling requires Meta to contribute $567 million to a fund dedicated to addressing the mental health impacts associated with its platforms, following an earlier $375 million penalty imposed by a jury in March. Together, the judgments represent one of the largest financial penalties ever levied against the company over child safety concerns.

Judge Bryan Biedscheid ruled that $420 million of the newly ordered funds will be allocated to treatment services for young people across New Mexico. The remaining funds will support mental health awareness campaigns, prevention initiatives, screening services and other child protection programs over the next five years.

The decision stems from a landmark trial in which a jury concluded that Meta knowingly contributed to children's mental health harms while concealing what it knew about child sexual exploitation occurring on Facebook and Instagram. The March verdict marked the first time Meta was found legally liable for harmful acts committed through its platforms.

The case followed investigative reporting that highlighted how Facebook and Instagram had been used by child predators and traffickers, while former Meta content moderators testified that reports involving child grooming and other harmful material were not always escalated for action.

During the second phase of the trial, prosecutors sought sweeping reforms aimed at strengthening child safety across Meta's platforms. These included tighter age verification measures, restrictions on addictive platform features and stronger privacy protections for minors.

In its latest order, the court directed Meta to introduce clearer safety information across Facebook and Instagram through banners and educational screens explaining available child protection tools, privacy settings and ways to report inappropriate interactions. The company will also be required to participate in a child safety education campaign in New Mexico, subject to state oversight.

Although the court acknowledged that federal children's privacy laws prevent Meta from applying certain age verification measures to users under 13, it ordered the company to continue improving its age-assurance technologies.

Meta must further develop artificial intelligence systems capable of estimating users' ages based on behavioral signals, including online activity, social connections and content engagement. The company has also been instructed to create a dedicated prediction model capable of identifying users likely to be under the age of 13 within the next two years.

Under the ruling, Meta must request proof of age from Facebook and Instagram users in New Mexico whom its systems estimate to be younger than 13. Until users verify their age, the company must treat them as minors and apply the corresponding protections.

The court also ordered Meta to establish a reporting portal in partnership with schools or child safety organizations, enabling educators to report accounts believed to belong to children under 13. In addition, the company must delete personal information collected from users under that age and submit progress reports twice a year detailing its compliance with the court's directives.

New Mexico Attorney General Raúl Torrez welcomed the ruling, describing it as a major step toward holding technology companies accountable for the safety of children online.

He said the case was intended to ensure that large technology companies could not continue profiting from practices that place young people at risk without facing consequences.

Meta said it strongly disagrees with the ruling and plans to appeal.

In a statement, a company spokesperson said Meta continues to invest heavily in online safety, arguing that it has been transparent about the challenges of detecting harmful content and identifying bad actors. The company maintained that it remains confident in its efforts to protect teenagers using its platforms.

Although the nearly $1 billion judgment represents only a small portion of Meta's annual profits—which totaled approximately $60 billion in 2025—the case adds to mounting legal pressure on the company.

Meta is currently facing multiple lawsuits across the United States alleging that the design of its platforms contributes to mental health problems among young users. A separate trial is underway in Tennessee over claims that Instagram encourages compulsive use linked to eating disorders and depression, while another federal case is scheduled to begin later this month in California.

Legal experts say the New Mexico ruling could set an important precedent for future litigation involving social media companies and child safety. Rather than banning social media outright, they argue, states are increasingly using the courts to hold technology firms accountable for platform designs that allegedly place young users at risk. (ILKHA)