Meta Platforms is challenging a $3.7 billion proposal from New Mexico aimed at addressing a teen mental health crisis, arguing in a state trial that the plan would unfairly force it to fund care for all adolescents in the state. The case represents a significant test of whether social media companies can be held financially liable for public health issues and could set a precedent for thousands of similar lawsuits across the United States.
New Mexico Attorney General Raúl Torrez rejected Meta's arguments as a “pressure campaign from a company that has run out of legal arguments.” In an exclusive statement to The Post, Torrez said, "They lost at trial, and rather than build a safer product, they’re threatening to take their ball and go home. It won’t work."
The state's proposed 15-year program includes over $2.8 billion for treating mental health problems in youth and was put forward after a jury in March found Meta liable for $375 million in damages for misrepresenting the safety of its platforms for young users. Meta is also facing over 2,400 other lawsuits nationwide, including from more than 40 state attorneys general, that accuse it of designing addictive products that harm young people.
At stake in the non-jury trial is whether a judge will declare Meta's platforms a “public nuisance,” a finding that would grant the court broad powers to order remedies. In addition to funding the mental health program, New Mexico is demanding significant changes to Meta's products, including mandatory age verification, an end to autoplay and infinite scroll features for minors, and the appointment of a court-monitored child safety official.
Meta’s legal team has focused on the scope of the financial remedy, questioning an expert economist on whether the $3.7 billion figure was calculated to cover all teen mental health issues, regardless of their cause. "You haven't at all attempted to determine what proportion of the 3.7 billion is completely unrelated to social media?" Meta attorney Alex Parkinson asked the state's witness, who confirmed she had not.
The company has argued the state’s demands are so burdensome it might be forced to cease operations in New Mexico entirely, a tactic it has used in other regulatory disputes in Europe and Canada. However, legal experts suggest the threat may be wearing thin as legal and regulatory pressure mounts from numerous states. A similar lawsuit filed in Texas accuses Netflix of designing addictive features and collecting data from children, showing the issue is expanding beyond just social media platforms.
New Mexico’s case is at the forefront of a legal strategy that treats social media’s impact as a public nuisance, similar to historical cases against industries like tobacco and opioids. If successful, it could create a blueprint for other states to demand not only monetary damages but also fundamental changes to how platforms are designed for young users.
The trial is in its second phase, with Meta set to present its witnesses in the coming days. The judge will issue a written ruling at a later date, a decision that will be closely watched by tech companies, regulators, and parents across the country.
This article is for informational purposes only and does not constitute investment advice.
