Meta faces its first courtroom loss over child safety claims as a New Mexico jury imposes a $375 million fine following a state investigation.
A jury in Santa Fe, New Mexico, ordered Meta to pay $375 million in civil penalties on Tuesday after finding the company misled consumers about the safety of its platforms and put children at risk. The verdict came after a six-week trial and marks the first jury decision against Meta on these issues.
New Mexico Attorney General Raúl Torrez stated that Meta executives knew their products harmed children, ignored internal warnings, and lied to the public. Torrez called the ruling a 'watershed moment' for parents concerned about online dangers, based on his office's press release.
Evidence from the Trial
The case stemmed from a 2023 undercover investigation by New Mexico authorities, who created decoy accounts on Facebook and Instagram posing as users under 14. This led to arrests of several men in May 2024 for sending explicit material and soliciting sex.
Former Meta employees provided key testimony. Arturo Bejar, a former engineering leader at Meta, described how the company's algorithms could connect predators with children, drawing from his experience when his own daughter received unwanted advances on Instagram.
Brian Boland, a former vice president at Meta, testified that safety was not a priority for CEO Mark Zuckerberg and former COO Sheryl Sandberg when he left in 2020. During his deposition, Zuckerberg characterized internal research on platform addictiveness as 'inconclusive,' which the state contested with evidence from Meta's own studies.
Meta announced plans to appeal the verdict, stating it disagrees with the decision and works to keep users safe. Meanwhile, a separate trial in Los Angeles involving Meta and YouTube over similar claims is underway, with a jury currently deliberating.
A second phase of the New Mexico case, a bench trial set for May 4, will address public nuisance claims and could result in additional penalties or required changes to Meta's platforms, such as age verification and enhanced protections for minors.
