Meta has been ordered to pay $567 million in a landmark New Mexico case over the alleged harm Facebook and Instagram cause to children and teenagers.
A New Mexico judge issued the order on Thursday, August 6, 2026, concluding the second phase of a case brought against the parent company of Facebook and Instagram over child safety and the effects of its platforms on young users.
The court directed the money into a youth mental health and abatement fund, with a significant portion earmarked for treatment and prevention programmes.
The latest ruling adds to the financial consequences Meta faces in the case. Combined with a $375 million civil penalty awarded during the first phase of the trial, Meta’s total financial liability in the New Mexico case now stands at approximately $942 million.
The case also requires Meta to make changes to how it identifies and protects younger users on its platforms.
The New Mexico case focused on allegations that Meta’s platforms exposed children to serious risks while using design features that encouraged prolonged engagement.
The court found that Facebook and Instagram created a public nuisance and endangered young users through what authorities described as predatory risks and addictive design practices.
New Mexico authorities argued that Meta knew about risks affecting children and teenagers but failed to adequately address them.
The court directed the new payment toward programmes designed to address the effects of social media on young people.
Approximately $420 million will go toward mental health treatment services for youths over a five-year period.
The remaining funds will support initiatives including awareness, prevention and screening programmes designed to identify and address problems affecting children and teenagers.
The ruling also places new obligations on Meta.
Meta must develop an AI-powered prediction system over the next two years to help identify users who may be younger than 13.
The court has also ordered the company to apply its strictest privacy protections to unverified teenage users until they establish their actual age.
Meta must also create a dedicated reporting channel for educators and school staff to flag accounts they believe belong to children who are too young to use the platforms.
The company will further have to submit twice-yearly compliance and progress reports to the court.
Meta has rejected the findings and plans to appeal the ruling. The company has argued that it has invested heavily in tools designed to protect teenagers and children, including parental controls, privacy settings and other safety features.
Meta has also maintained that it continues to improve its approach to protecting young users as concerns around social media and children evolve.
The case arrives as governments, parents and regulators around the world increasingly scrutinise the relationship between social media and young people’s wellbeing.
