Meta ordered to pay $567M into New Mexico child fund

In the second phase of the trial, prosecutors asked the judge to impose fundamental changes on the company to end addictive features, improve age verification processes, and prevent child sexual exploitation via default privacy settings and closer oversight.

Background of the case

According to court filings reviewed by The Associated Press, the requested remedies targeted both Facebook and Instagram, the two Meta platforms at the center of the case. Prosecutors argued that the platforms' design choices had foreseeable consequences for minors.

The judge accepted the state's argument that financial compensation alone was insufficient to address the systemic risks identified during trial. By directing payment into a dedicated fund rather than general state revenue, the court ensured the money would be used for the population most directly affected by the alleged harms.

Court observers noted that the order reflects a growing willingness among state courts to treat platform design — not just individual content moderation decisions — as a proper subject of judicial remedy. The ruling adds to a body of recent decisions scrutinizing how major social media companies serve younger users.

Meta's response and next steps

Meta has indicated it intends to review the ruling and consider its legal options, including a possible appeal. The company has previously argued that its existing safety tools, including age-gating and content restrictions, are sufficient to protect minors.

Under the order, an administrator will be responsible for disbursing funds to qualifying programs, which may include counseling services, school-based mental health initiatives, and digital literacy curricula. Details on the disbursement timeline were not immediately released.

Prosecutors described the ruling as a milestone in efforts to hold technology companies accountable for design choices that affect minors. "los fiscales habían solicitado al juez que impusiera cambios fundamentales en la compañía con el objetivo de poner fin a funciones adictivas, mejorar los procesos de verificación de edad y prevenir la explotación sexual infantil mediante configuraciones predeterminadas de privacidad, así como una supervisión más estrecha," the state's filing stated.

Broader context and implications

The case is part of a broader wave of state-level litigation against major social media companies, several of which have been settled or are pending in courts across the country. Legal analysts say the New Mexico order could influence the scope of remedies sought in other jurisdictions.

Child mental health advocates welcomed the fund, noting that demand for youth counseling and crisis services has risen sharply in recent years. Several organizations said they intend to apply for disbursements once the application process opens.

Meta has not commented publicly on the specific operational changes that may be required under the order. The court's written ruling is expected to be published in the coming days, which may clarify which platforms and features fall within its scope.

The judge set a follow-up hearing for later this year to review compliance and consider any additional remedies requested by the state.