New Mexico judge orders Meta to pay $567M and overhaul features, ruling it a public nuisance fueling youth mental health crisis

Ruling and penalties

On 6 August 2026, First Judicial District Court Judge Bryan Biedscheid ordered Meta Platforms to pay $567 million into a New Mexico fund for teen mental health prevention and treatment, concluding the second phase of a trial that began with a lawsuit filed by New Mexico Attorney General Raúl Torrez in 2023. The amount adds to $375 million in civil penalties a jury imposed in March 2026 after finding that Meta's platforms did not effectively protect children from exploitation and that the company had misled parents about the safety of its apps. The combined $942 million is the largest sum yet in a wave of U.S. litigation over claims that social media harms young people, far exceeding a $6 million verdict against Meta and Alphabet's Google in a California case in March.

Biedscheid concluded that Meta had created a public nuisance in New Mexico, writing that the company's platforms were designed to maximize engagement and time spent, particularly among teenage users.

“Although Meta is not alone in this regard, its social media platforms are a significant contributing factor to the current mental health crisis among New Mexico's youth established by the substantial evidence in this case.”

Required platform changes

The judge ordered Meta to implement safeguards for users under 18 in New Mexico, including limiting time on Facebook and Instagram to a combined 90 hours per month and shutting off push notifications from 8am to 3pm on weekdays and from 10pm to 7am on other days. Meta must hide like counts by default for users under 18, with parental consent required to display them, and ban sexualized chatbot interactions with minors. The company must also blur images suspected of containing nudity, delete all accounts and data of users under 13, and make new teen accounts private by default. Meta is further required to improve age verification using artificial intelligence and to build informational screens on Facebook and Instagram explaining protection features.

Biedscheid rejected some of the changes New Mexico sought, including modifications to Meta's algorithms and features such as infinite scroll and autoplay videos. Meta argued during the trial that some requested changes were not technologically possible and could force it to exit the state. The judge also rejected Meta's call to dismiss the case under Section 230 of the Communications Decency Act.

Where the money goes

Of the $567 million fund, $420 million is earmarked for treatment services for young people, with the remainder going toward awareness and prevention campaigns, screening services, and other costs over five years. How the money is distributed will be up to New Mexico lawmakers.

Phase 1 civil penalties (Mar 2026)375

Phase 2 abatement fund (Aug 2026)567

Phase 1 civil penalties (Mar 2026)

375 $M

Phase 2 abatement fund (Aug 2026)

567 $M

Data from the article text

Meta's response and broader litigation

Meta said the claims misrepresented the facts and announced it will appeal the ruling.

“This case has always been about protecting children, standing up for families, and making sure that one of the world's largest technology companies cannot profit from practices that endanger young people without consequence.”

A Meta spokesperson said the company works hard to keep people safe and remains confident in its record of protecting teens online. The ruling adds to mounting legal pressure: Meta said in a court filing last month that California, Colorado, Kentucky, and New Jersey are seeking $1.4 trillion in potential penalties over allegations that the company designed Facebook and Instagram to addict young users. Meta reported $60.8 billion in revenue and $15.85 billion in net income in Q2 2026.