SANTA FE, Mexico / RankWire.AI / – A New Mexico state judge has ordered Meta to pay $567 million to create a youth mental health abatement fund after a three-week bench trial. Judge Bryan Biedscheid in Santa Fe determined that Facebook and Instagram caused a public nuisance by worsening a mental health crisis among teenagers and neglecting to shield children from online dangers. The funds will mainly be used for clinical treatment and child safety programs across the state.
This latest ruling comes after a separate $375 million jury award against Meta in March 2026 during the initial phase of the state’s legal proceedings. Jurors found that Meta breached New Mexico consumer protection laws by misrepresenting safety features for younger users. When combined, the rulings mean Meta is liable for $567 million in New Mexico for teen mental health initiatives, with a total liability of $942 million from the enforcement action led by New Mexico Attorney General Raúl Torrez.
The court’s detailed remedial order allocates $420 million of the new funds specifically to support clinical mental health treatment services for children throughout New Mexico. The rest of the judgment funds public education campaigns, early screening programs, and community prevention efforts over the next five years. Additionally, the ruling enforces strict operational rules for Meta, including maintaining default private settings for under-18 accounts, limiting daily engagement time, restricting notification alerts, and enhancing screening for child sexual abuse material.
Meta Ordered to Pay $567 Million for Teen Mental Health in New Mexico
This enforcement action in Mexico stands as one of the largest fines ever imposed on a major tech company over child safety standards. Attorney General Torrez launched the lawsuit after investigations suggested that Meta’s algorithmic recommendation systems repeatedly exposed minor accounts to predatory contacts and explicit content. Despite ordering significant product changes, Judge Biedscheid did not require mandatory identity verification for users under 13, citing protections under the Children’s Online Privacy Protection Act.
Meta’s corporate representatives confirmed after the court session that they plan to appeal the decision to higher state courts. In an official statement, Meta highlighted its investments in creating age-appropriate features, parental supervision tools, and automated content moderation systems across its platforms. The company argued that the ruling misrepresents how its platform functions and overlooks internal efforts to remove harmful material and identify malicious actors on social networks.
Judge Orders Funds Toward Prevention and Early Detection Programs
The ruling arrives amid increasing legal challenges faced by social media companies in federal and state courts across the United States. Over 40 state attorneys general and hundreds of local school districts have filed similar lawsuits claiming that platform design encourages compulsive usage among teenagers. The New Mexico decision sets a significant legal precedent as other states move forward with their own federal court trials later this year.
As Meta prepares to appeal the $567 million order for teen mental health funds, state officials are reviewing how to allocate the proceeds from the trial. They plan to prioritize rural healthcare, behavioral counseling, and school-based health services. The remedies mandated by Thursday’s ruling are expected to stay in effect for five years, pending the outcome of Meta’s appeal.