First victory over Big Tech by a U.S. state in court: Meta to pay big money for exposing children to sexual exploitation

Meta must—quite literally—pay for endangering children across its platforms. 

A New Mexico jury has found Meta liable for misleading the public, exposing children to sexual exploitation, and fostering adverse mental health. Meta must pay $375 million in civil penalties for about 75,000 violations at the maximum penalty of $5,000 each.

This decision marks the first time a U.S. state has successfully defeated a big tech company at trial.

“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,” New Mexico Attorney General Raúl Torrez said in response to the verdict. “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.”

Torrez added: “The substantial damages the jury ordered Meta to pay should send a clear message to big tech executives that no company is beyond the reach of the law.”

A fine of $375 million is certainly significant, but worth putting into perspective when levied against a multibillion dollar company. It represents about 1.65% of the $22.8 billion Meta reported as its net income for 2025 (not to mention its nearly $60 billion in revenue). 

The owner of Instagram, Facebook, and WhatsApp will face a second phase of the trial in May, sans jury. The judge will rule if Meta has created a public nuisance, potentially making the company pay additional penalties and change aspects of its platforms. 

The company plans to appeal the initial verdict. “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 Fast Company. “We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online.”

What evidence was brought against Meta at trial?

The New Mexico Department of Justice started an investigation into Meta’s protections for children. The trial began early February and lasted seven weeks, as the jury heard from former employees and saw internal documents supporting the argument that Meta misled consumers about safety and enabled child sexual exploitation on its platforms. 

Testimonies included that of Arturo Béjar, a former Meta employee and whistleblower, the BBC reports. He testified about the disturbing experiences of his young daughter and her friends on the platforms, as well as how his pleas for increased safety went ignored at the company. 

In contrast, Meta argued it has taken steps toward increasing safety for young people, including the 2024 launch of Teen Accounts.

Meta is also in the midst of a lawsuit specifically focused on social media addiction. The California trial accuses Meta and YouTube of exacerbating poor mental health in the defendant, identified only by the initials KGM.