SANTA FE, Mexico / RankWire.AI / – Meta Platforms Inc. has been ordered by a New Mexico court to pay $567 million. This money will support youth behavioral health treatment and prevention programs. The ruling was issued after a three-week trial without a jury in Santa Fe. Judge Bryan Biedscheid of the First Judicial District Court found that Meta’s main platforms, Facebook and Instagram, created a public nuisance. The court determined that Meta’s engagement-focused design worsened mental health issues among youth and increased online risks for children in the state.
This new financial penalty adds to a previous $375 million jury verdict issued in March 2026. That award came during the initial stage of the state’s legal case. Jurors had found that Meta broke New Mexico consumer protection laws by misleading users about safety features for younger audiences. When combined, the two rulings mean Meta owes a total of $942 million in the state’s legal actions. The case is led by New Mexico Attorney General Raúl Torrez.
The court’s detailed order directs that $420 million of the recent award go directly to mental health treatment services for children across New Mexico. The rest of the funds will support public awareness campaigns, early screening efforts, and community prevention programs over the next five years. The ruling also requires Meta to follow strict operational rules. These include enforcing private default settings for accounts of users under 18, limiting daily engagement time, restricting notification pushes, and improving screening for child sexual abuse material.
Meta Must Pay $567 Million to Fund Teen Mental Health Initiatives in New Mexico
This enforcement action in Mexico is one of the largest fines ever imposed on a major tech company for child safety issues. Attorney General Torrez filed the lawsuit after investigations revealed that Meta’s recommendation algorithms exposed minors to predatory contact and explicit content. While the court ordered numerous product changes, Judge Biedscheid did not require identity tracking for users under 13. He cited federal privacy protections under the Children’s Online Privacy Protection Act.
Meta representatives said after the hearing that the company plans to appeal. In an official statement, Meta emphasized its investments in age-appropriate features, parental supervision tools, and automated moderation. Company officials argued the ruling misrepresents platform design and ignores their efforts to remove harmful content and identify bad actors.
Judge Orders Funds Toward Prevention and Early Detection Programs
This ruling comes amid broader legal actions against social media companies in the United States. Over 40 state attorneys general and many local school districts are involved in similar lawsuits. They allege that platform design encourages compulsive usage among teenagers. The New Mexico case sets a significant legal precedent as other states prepare for federal trials later this year.
As Meta prepares to appeal the $567 million order, New Mexico officials are reviewing how to distribute the funds. Priority areas include rural healthcare, behavioral counseling, and school health centers. The court’s mandates will stay in effect for five years while Meta’s appeal is pending.