Meta to appeal $380M rulings

Meta says it will appeal two recent court losses totaling nearly $381 million after juries in New Mexico and Los Angeles found its platforms harmed young users. (foxbusiness.com) The bigger judgment came on March 24, when a New Mexico jury ordered Meta to pay $375 million in civil penalties after finding it violated the state’s consumer protection law and misled users about safety on Facebook and Instagram. New Mexico Attorney General Raúl Torrez said the case grew out of a 2023 undercover operation using a fake 13-year-old profile. (cnbc.com) A day later, on March 25, a Los Angeles jury found Meta and Google’s YouTube negligent in a bellwether case brought by a now-20-year-old woman identified as K.G.M. The jury awarded $6 million, with Meta responsible for 70% and YouTube 30%. (reuters.com) Meta’s appeal argument centers on Section 230 of the Communications Decency Act, a 1996 law that generally shields online platforms from liability for user posts and many publishing decisions. Meta litigation chief Ethan Davis told Fox Business the recent rulings punish the company for content teens saw on its apps, which he said falls inside that legal protection. (foxbusiness.com) Plaintiffs and state lawyers framed the cases differently. In Los Angeles, jurors found the companies negligent for design and warning failures, and in New Mexico the state said Meta deceived families about child safety rather than merely hosting harmful third-party content. (reuters.com, nmdoj.gov) Those distinctions matter because thousands of similar claims are already pending against social media companies including Meta, Snap, TikTok and YouTube. Reuters called the Los Angeles case a bellwether, meaning other courts and litigants will watch the appeal for guidance even though it does not automatically decide the rest. (reuters.com, bloomberglaw.com) Meta has also started removing ads on Facebook and Instagram that were placed by law firms seeking new plaintiffs for social media addiction suits. The company said on April 9 that it was pulling those ads while the litigation campaign against it and other platforms expands. (reuters.com) New Mexico’s case is not over. Judge Bryan Biedscheid denied Meta’s request to postpone a second phase of the case, and the state says a bench trial beginning May 4 will focus on court-ordered changes to Meta’s products for minors. (nmdoj.gov) Google has also said it will appeal the Los Angeles verdict. For now, the two March rulings have turned a long-running policy fight over child safety, product design and platform immunity into an appellate fight with hundreds of millions of dollars at stake. (abcnews.go.com, foxbusiness.com)