Meta ordered to pay $375M over lawsuit accusing the company of failing to protect kids from sexual exploitation

• A New Mexico jury found Meta liable for failing to protect kids from sexual exploitation.
• The jury approved a $375 million fine for Meta.
• Meta said it disagrees with the verdict and will be filing appeals.

It's shaping up to be a big month of verdicts for Meta.

While jurors in Los Angeles deliberate over Meta and Google's liability in a case about social media addiction, in New Mexico, Meta was found liable in a separate case about child safety on its platforms.

"New Mexico is proud to be the first state to hold Meta accountable in court for misleading parents, enabling child exploitation, and harming kids," said New Mexico Attorney General Raúl Torrez in a statement to Business Insider.

In court, the state proposed to the jury penalties of up to roughly $2.2 billion in fines. The jury, however, awarded the lesser amount of $375 million.

"In the next phase of this legal proceeding, we will seek additional financial penalties and court-mandated changes to Meta's platforms that offer stronger protections for children," Torrez added.

"We respectfully disagree with the verdict and will appeal. 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," a Meta spokesperson told Business Insider in a statement.

"We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online," the spokesperson added.

The New Mexico lawsuit, brought by Torrez in 2023, accused Meta of violating the state's Unfair Trade Practices Act. New Mexico's DOJ argued in court that Meta prioritized profits over protecting children on its apps.

"Over the course of a decade, Meta has failed over and over again to act honestly and transparently," Linda Singer, the state attorney, told the jury during the trial's closing arguments on Monday. "It's failed to act to protect young people in this state. It is up to you to finish this job."

"It's clear that young people are spending too much time on Meta's products; they've lost control," Singer added. "Meta knew that, and it didn't disclose it."

Singer also said in her closing statement said that the company failed to enforce its minimum user age of 13, and that testimonies showed Meta's algorithms had been recommending sensational and harmful content to teenagers.

The company has pointed to its policies, including the introduction of Teen Accounts and additional parental control tools. Based on Meta's user policy webpage, Meta has had a minimum age requirement of