Meta pay $375 million for violating New Mexico law in child exploitation

A New Mexico state court jury on Tuesday held Meta liable for nearly $400 million in civil damages after a trial where the state attorney general accused the Facebook and Instagram operator of failing to safeguard kids who use its apps from child predators.

The civil trial, which began with opening arguments in Santa Fe last month, centered on allegations that Meta violated state consumer protections laws and misled residents about the safety of apps like Facebook and Instagram. New Mexico attorney general Raúl Torrez sued Meta in 2023 following an undercover operation involving the creation of a fake social media profile of a 13-year-old girl that he previously told CNBC “was simply inundated with images and targeted solicitations” from child abusers.

Deliberations began Monday, and jurors were tasked with ruling in favor or against the defendant Meta. Jury members found that Meta willfully violated the state’s unfair practices act, and decided the company should pay $375 million in damages based on the number of violations

Linda Singer, an attorney representing New Mexico, urged jury members during closing statements to impose a civil penalty against Meta that could top $2 billion.

“We respectfully disagree with the verdict and will appeal,” a Meta spokesperson said. “We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content. We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online.”

Meta denied the state of New Mexico’s allegations and previously said that it is “focused on demonstrating our longstanding commitment to supporting young people.”

“The jury’s verdict is a historic victory for every child and family who has paid the price for Meta’s choice to put profits over kids’ safety,” Torrez said in a statement. “Meta executives knew their products harmed children, disregarded warnings from their own employees, and lied to the public about what they knew. Today the jury joined families, educators, and child safety experts in saying enough is enough.”

When the New Mexico trial’s second phase, conducted without a jury, commences on May 4, a judge will determine whether Meta created a public nuisance and should fund public programs intended to address the alleged harms. The state’s lawyers are also urging Meta to implement changes to its apps and operations, including “enacting effective age verification, removing predators from the platform, and protecting minors from encrypted communications that shield bad actors.”

During the trial, New Mexico prosecutors revealed legal filings detailing internal messages from Meta employees discussing how CEO Mark Zuckerberg’s 2019 announcement to make Facebook Messenger end-to-end encrypted by default would impact the ability to disclose to law enforcement some 7.5 million child sexual abuse material reports.

In an interview with CNBC on Tuesday before the verdict was…