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A New Mexico judge has ordered Meta to establish a $567 million abatement fund following a jury determination that the social media company violated the state’s unfair practices act. The ruling comes as part of ongoing litigation focused on the platform’s impact on young users, and represents the latest substantial financial penalty against the technology giant.
Judge Bryan Biedscheid determined that Meta’s platforms serve as a significant contributor to mental health challenges affecting New Mexico’s youth. The abatement fund will primarily allocate $420 million toward treatment services for individuals harmed by the platforms, with remaining funds directed toward prevention initiatives, screening services, and program evaluation efforts.
This judgment compounds previous financial consequences for Meta in the case. The company was previously ordered to pay $375 million in civil penalties earlier this year. State Attorney General Raúl Torrez, who initiated the lawsuit in 2023 following an undercover operation, emphasized that the ruling holds Meta accountable for documented harms to children and families while forcing operational changes within New Mexico.
Meta has indicated its intention to appeal the decision. Company representatives stated disagreement with the ruling and emphasized their commitment to platform safety and teen protection. Legal experts have compared recent social media litigation to tobacco industry cases from the 1990s, suggesting potential industry-wide implications as additional jurisdictions pursue similar claims.
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