Meta Jury Finds Child Harm, Imposes $375M Penalty

This verdict, though a tiny fraction of Meta’s $201 billion revenue in 2025, illustrates a growing shift in public perception and legal scrutiny of social media companies regarding youth safety. The jury in New Mexico found Meta, which owns Instagram, Facebook, and WhatsApp, in violation of state consumer protection law, determining it made false or misleading statements and engaged in “unconscionable” trade practices, as argued by New Mexico Attorney General Raúl Torrez’s team.

Prosecutors, led by Donald Migliori, successfully argued Meta prioritized profits over safety, knowing the risks of child sexual exploitation and mental health impacts. Meta stated it disagrees with the verdict and will appeal.

This landmark decision is the first in several state and federal trials this year, including a Los Angeles bellwether case against Meta and YouTube, where TikTok and Snap settled before trial. Another multidistrict litigation involving school districts is scheduled for this summer before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California.

These lawsuits challenge tech companies’ First Amendment shield and Section 230 protections, potentially leading to substantial legal fees, settlements, and operational changes that could impact user numbers and advertising revenue. Jayne Conroy, a lawyer on the plaintiffs’ trial team, draws parallels to opioid cases, emphasizing deliberate design choices leading to addiction and harm.

Resolution of these cases could take years, with U.S. tech regulation progressing slowly.