New Mexico Judge Orders Meta to Pay $567 Million for Teen Mental Health Fund

A New Mexico state court ordered Meta to pay $567 million into a teen mental health fund on Thursday, along with mandatory platform changes, after ruling the company harmed children’s wellbeing.

Judge Finds Public Nuisance

Judge Bryan Biedscheid ruled Meta created a public nuisance in New Mexico, siding with Attorney General Raúl Torrez, who accused the company of designing addictive products and failing to protect minors from sexual exploitation. The ruling follows an earlier $375 million penalty five months ago for misrepresenting platform safety.

Five-Year Safety Requirements

Biedscheid ordered Meta to implement monthly teen usage limits, notification restrictions, tighter adult-minor contact controls, AI chatbot safeguards, and stronger review of abuse reports for five years. The judge specifically barred chatbots from romantic or sexualized interactions with children. Meta said it will appeal, maintaining confidence in its teen safety record.

Broader Legal Context

The ruling rejected Meta’s Section 230 defense, though some remedies were denied over First Amendment concerns. Over 40 states and 1,300 school districts have filed similar nuisance lawsuits. Torrez called the ruling a “blueprint” for other states. Meta faces another trial next week in Oakland over claims from 29 states.