Meta Labeled ‘Public Nuisance’ and Fined $567M to Fund Youth Mental Health Services
In the second phase of a landmark trial, a New Mexico court ordered Meta, the parent company of Instagram and Facebook, to pay $567 million to address harms caused to young users.
According to Judge Bryan Biedscheid’s ruling, the majority of the payout $420 million will fund youth treatment services, while the remaining funds will cover awareness, prevention, screening, and related program costs over the next five years.
The new penalty builds on $375 million in civil fines awarded against Meta in March, after jurors concluded the company knowingly compromised youth mental health and concealed risks regarding child sexual exploitation on Facebook and Instagram. During this second phase, state prosecutors urged the court to mandate fundamental product overhauls including reining in addictive features, strengthening age verification, tightening default privacy protections, and increasing internal oversight.
The total $942 million penalty represents a small fraction of Meta’s financial output, following its approximately $60 billion profit in 2025. Investors largely brushed off the New Mexico decision in after-hours trading Thursday, with Meta’s stock dropping less than 0.5% to $589.44.
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Nevertheless, the judgment marks another costly setback for Meta as it navigates thousands of similar lawsuits from families alleging social media platform harms.
New Mexico Attorney General Raúl Torrez said the ruling sends an “unmistakable message” that tech companies will be held accountable when they knowingly design products that put children at risk.
