SANTA FE, Mexico / RankWire.AI / – A court in New Mexico has ordered Meta to deposit $567 million into a youth mental health fund, ruling that the company’s platforms are a public nuisance. Judge Bryan Biedscheid of the First Judicial District Court in Santa Fe issued the verdict after a three-week bench trial. The court found that Facebook and Instagram played a significant role in the youth mental health crisis and failed to shield minors from online dangers and exploitation.
This latest ruling adds to a previous $375 million jury award made against Meta in March 2026 during the early phase of the state’s legal proceedings. In that case, jurors determined Meta violated New Mexico consumer protection laws by misrepresenting safety features for younger users. When combined, the two decisions mean Meta faces a total liability of $942 million from the New Mexico enforcement effort led by Attorney General Raúl Torrez, with the company ordered to contribute to the teen mental health fund.
According to the court’s detailed remedial order, $420 million of the new funds will go directly to mental health treatment services for children across New Mexico. The rest of the funds will support public education campaigns, early screening programs, and community prevention initiatives over the next five years. The ruling also enforces strict operational rules, requiring Meta to set default privacy protections for accounts of users under 18, limit daily usage, reduce notification alerts, and improve screening for child sexual abuse material.
Meta Ordered to Pay $567 Million for Teen Mental Health in New Mexico
This enforcement action from Mexico stands as one of the largest penalties imposed on a major tech firm regarding child safety. Attorney General Torrez filed the suit after investigations suggested Meta’s algorithms repeatedly exposed young users to predatory contacts and explicit content. While the court mandated significant product modifications, Judge Biedscheid stopped short of requiring mandatory identity verification for users under 13, citing federal privacy protections under the Children’s Online Privacy Protection Act.
Meta representatives confirmed after the hearing that the company plans 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 across its platforms. The company contended that the ruling misrepresents how its platforms operate and overlooks ongoing engineering efforts to remove harmful content and identify bad actors.
Judge Allocates Funds to Prevention and Early Detection Programs
This ruling arrives amid increased legal scrutiny of social media companies in the United States. Over 40 state attorneys general, along with numerous local school districts, have initiated similar lawsuits claiming that platform design encourages compulsive use among teens. The New Mexico case sets an important legal precedent as other state cases move toward federal trial later this year.
While Meta prepares to challenge the $567 million order in appellate courts, state officials are planning how to distribute the funds. Priority areas include rural healthcare, behavioral counseling, and school-based health programs. The court’s mandated remedies are set to remain in effect for five years, pending Meta’s appeal outcome.