Meta hit with $375M verdict
A New Mexico jury has ordered Meta to pay $375 million after finding the company enabled child sexual exploitation and misled consumers about safety on Facebook, Instagram, and WhatsApp — the first major U.S. verdict of its kind. The judgment increases legal and regulatory pressure on Meta amid broader scrutiny of platform safety and privacy. (reuters.com) (foxbusiness.com)
The case was brought by New Mexico Attorney General Raúl Torrez after a 2023 investigation that included an undercover operation creating a fake 13‑year‑old profile, according to state filings and reporting. (nmdoj.gov) A 12‑person jury in Santa Fe reached its decision after roughly a day of deliberations following a nearly seven‑week trial. (news.bloomberglaw.com) Jurors applied New Mexico’s Unfair Practices Act and imposed the statute’s maximum civil penalty of $5,000 per violation, the state Department of Justice said. (nmdoj.gov) Prosecutors presented internal Meta documents plus testimony from former Meta employees, law‑enforcement witnesses and educators to argue that specific platform design features enabled harmful interactions. (nmdoj.gov) Meta issued a statement saying it “respectfully disagrees” with the verdict and will appeal, while New Mexico’s DOJ said a bench phase beginning May 4 will address whether judges should order additional remedies or public‑program funding. (cnbc.com) During closing, state lawyers asked jurors to consider civil penalties that could have exceeded $2 billion, and New Mexico’s DOJ framed the result as the first state trial victory against a major tech company for alleged harms to young users. (cnbc.com) The decision arrives as a separate products‑liability trial involving Meta and YouTube in Los Angeles remains in deliberations, keeping multiple high‑profile legal challenges to major platforms active. (politico.com)
