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A jury in the United States has ordered social media giant Meta to pay $375m for harming children's mental health and making them vulnerable to sexual exploitation.The verdict, handed down in New Mexico after a six-week trial, marks the first time a US state has successfully sued Meta over child safety issues. State authorities accused Meta, the parent company of Instagram, Facebook, and WhatsApp, of failing to protect minors.Jurors sided with state prosecutors who argued that Meta prioritized profits over safety and violated parts of New Mexico's Unfair Practices Act. The jury agreed with allegations that Meta made false or misleading statements and engaged in 'unconscionable' trade practices that unfairly took advantage of the vulnerabilities and inexperience of children.The case involved testimony from 40 witnesses, including employees-turned-whistle-blowers, and reviewed hundreds of documents, reports, and emails. New Mexico Attorney General Raúl Torrez called the verdict 'a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety.'Meta has stated that it will appeal the verdict, with a spokesperson saying, '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 second phase in New Mexico's proceedings against Meta is scheduled to begin in May, when a judge will hear the state's claim that the company should be ordered to pay additional penalties and make specific changes to its platforms and company operations.

A New Mexico jury has ordered Meta to pay $375m in civil penalties after finding the company liable for misleading consumers about the safety of its platforms and enabling harm, including child sexual exploitation. This verdict marks the first bench trial to find Meta liable for acts committed on its platform. The lawsuit, brought by New Mexico Attorney General Raúl Torrez, claimed that Meta executives knew their products harmed children but disregarded warnings from their own employees and lied to the public about the risks. The jury found Meta liable for violating New Mexico's consumer protection laws, specifically the Unfair Practices Act. The penalty of $375m is the maximum allowed under the law of $5,000 per violation. Meta has announced its intention to appeal the ruling, accusing Torrez of making 'sensationalist, irrelevant arguments.' Internal Meta documents and testimony revealed that company employees and external child safety experts repeatedly warned about risks on Meta's platforms. Evidence presented included details of a sting investigation, 'Operation MetaPhile,' which led to the arrest of three men charged with sexually preying on children through Meta's platforms. The New Mexico court also heard about deficiencies in Meta's reporting of crimes on its platforms, including the exchange of child sexual abuse material. Meta generated high volumes of 'junk' reports by overly relying on AI to moderate its platforms, making it difficult for law enforcement to investigate crimes. In the next phase of the legal proceedings, the attorney general's office will seek additional financial penalties and court-mandated changes to Meta's platforms to offer stronger protections for children. The state is seeking design feature changes, including 'enacting effective age verification, removing predators from the platform, and protecting minors from encrypted communications.' This verdict is seen as a 'historic victory' for children and families who have been affected by Meta's actions. The case may also open the floodgates to further litigation and regulation of social media companies.