Meta Must Pay Nearly a Billion Dollars
A New Mexico judge ordered the tech giant to pay an additional $567 million, bringing the total damages to $942 million. Meta announces appeal.
A New Mexico judge ordered the tech giant to pay an additional $567 million, bringing the total damages to $942 million. Meta announces appeal.
Tech company Meta, owner of Facebook, Instagram, and WhatsApp, faces a record financial penalty in the United States. Judge Bryan Biedscheid of New Mexico ordered on Thursday, August 6, 2026, that the company must pay an additional $567 million for harm caused to children on its platforms, raising the total amount Meta owes in this case to $942 million.
Judge Biedscheid's decision followed a jury's verdict in March 2026 that found Meta liable for endangering children and awarded an initial $375 million. The new $567 million will be paid into a dedicated fund, with the largest portion, $420 million, earmarked for treatment and mental health services. According to the Straits Times, approximately three-quarters of this new fund should be used for mental health treatments, and the entire fund will be disbursed over a five-year period.
The legal process was initiated by New Mexico Attorney General Raul Torrez back in 2023. The lawsuit alleged that Meta failed to protect children from online dangers, including exposure to predators. During closing arguments, plaintiff attorney Linda Singer argued to the jury that Meta's algorithms directed adult users toward content posted by teenagers, while the company simultaneously concealed internal findings about risks to young people.
In March, the jury concluded that Meta violated the state's Unfair Practices Act by deceiving consumers about the safety of its products for children. Judge Biedscheid has now, in addition to the financial penalty, ordered changes to the platforms themselves to make them safer for the youngest users.
"This case has always been about protecting children, standing up for families, and ensuring that one of the world's largest tech companies cannot profit from practices that harm young people without consequences. Today's decision is a victory for every parent who has worried about what social media is doing to their child and for every child who deserves to grow up safer online," said Attorney General Raul Torrez after the verdict.
Meta, in an official statement, made it clear that it disagrees with the court's decision. "We disagree with the verdict and will appeal," a company spokesperson told Business Insider and AFP. In a more detailed statement, Meta emphasized that it works hard to protect users and is transparent about the challenges of identifying and removing harmful actors and content.
"We remain confident in our record of protecting teens online and will continue to defend against claims that misrepresent the facts," the Meta spokesperson added in a statement to Business Insider.
Interestingly, a discrepancy has emerged in reporting the total penalty amount. While Business Insider states that the sum of $375 million and $567 million totals $942 million, Singapore's Straits Times mentions $727 million in its headline. This is likely an error in the Straits Times' calculation, as both outlets report identical individual amounts for the two verdicts.
This New Mexico verdict represents a significant precedent in the increasingly heated global debate over tech giants' responsibility for children's online safety, a topic that is also gaining traction in European legislative circles.
