Meta hit with $375M verdict
A New Mexico jury ordered Meta to pay $375 million after finding its platforms violated consumer protection law related to child safety — a major regulatory hit with product consequences. PM candidates should expect case-study questions about balancing growth with safety, and how to measure and mitigate harm. (nbcnews.com)
The New Mexico Department of Justice called the decision a historic first — saying it is the first time a state has won at trial against a major tech company for harming young users. (nmdoj.gov) Under New Mexico’s Unfair Practices Act prosecutors asked jurors to apply the law’s maximum civil penalty of $5,000 per violation, a statutory mechanism the DOJ used in its case. (nmdoj.gov) Prosecutors presented six weeks of evidence in Santa Fe that included internal Meta documents and testimony from former Meta employees, law enforcement officials, and New Mexico educators. (news.bloomberglaw.com) The lawsuit traces to a 2023 Attorney General investigation that ran undercover decoy Facebook and Instagram accounts posing as a 13‑year‑old, which prosecutors said were inundated with solicitations and trafficking offers. (cnbc.com) Jurors were shown a recorded deposition from CEO Mark Zuckerberg during the trial as part of the state’s documentary and witness evidence. (news.bloomberglaw.com) A judge will preside over a second, non‑jury remedies phase beginning May 4 to consider whether the company should be declared a public nuisance and ordered to fund or implement court‑mandated safety measures. (cnbc.com) Meta issued a statement saying it disagrees with the verdict and will appeal while arguing it works to protect teens and faces legal defenses including First Amendment and Section 230 issues, defenses it has raised throughout related litigation. (nbcnews.com)
