Jury says Meta knowingly harmed children for profit, awarding landmark verdict

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A New Mexico jury determined Tuesday that Meta knowingly harmed children’s mental health and concealed what it knew about child sexual exploitation on its social media platforms, a verdict that signals a changing tide against tech companies and the government’s willingness to crack down.

The landmark decision comes after a nearly seven-week trial, and as jurors in a federal court in California have been sequestered in deliberations for more than a week about whether Meta and YouTube should be liable in a similar case.

New Mexico jurors sided with state prosecutors who argued that Meta — which owns Instagram, Facebook and WhatsApp — prioritized profits over safety, and violated parts of the state’s Unfair Practices Act.

The jury agreed with allegations that Meta made false or misleading statements and also agreed that Meta engaged in “unconscionable” trade practices that unfairly took advantage of the vulnerabilities of and inexperience of children.

How much Meta owes

Jurors found there were thousands of violations, each counting separately toward a penalty of $375 million. That’s less than one-fifth of what prosecutors were seeking.

Meta is valued at about $1.5 trillion and the company’s stock was up 5% in early after-hours trading following the verdict, a signal that shareholders were shrugging off the news.

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