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Meta faces New Mexico trial over public nuisance claims as state seeks billions in damages

Attorney General Raúl Torrez alleges platforms were designed to addict young users; Meta warns mandates could force withdrawal from the state

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Owen Mercer
Markets and Finance Editor
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Source: Yahoo Finance · original
Meta faces New Mexico trial that could force changes to Facebook, other platforms
Santa Fe court to decide if social media design constitutes a public nuisance under state law

A trial commencing in Santa Fe, New Mexico, on Monday will determine whether Meta Platforms' design of Facebook, Instagram, and WhatsApp constitutes a public nuisance under state law. The case, led by Attorney General Raúl Torrez, alleges the platforms were intentionally designed to addict young users and failed to protect children from sexual exploitation. This legal challenge marks a significant escalation in the regulatory scrutiny facing the social media giant, with the state seeking billions of dollars in additional damages beyond a previous verdict.

While a jury in March ordered Meta to pay $375 million in damages for violating consumer protection laws, the current proceedings focus on whether the court can mandate sweeping operational changes. Torrez's office intends to seek court-ordered modifications to platform algorithms, age verification systems, and features such as infinite scrolling. The state argues these measures are necessary to abate harm to the community, drawing parallels to public nuisance cases involving tobacco, opioids, and climate change.

Meta has issued a stark warning that complying with the state's proposed mandates could force the company to withdraw from New Mexico entirely. The technology firm argues the requested changes are technologically impractical or completely impossible and contend that the mandates infringe on parental rights and free expression. In court filings, the company disputes the claim that social media causes mental health problems due to a lack of scientific evidence, stating it has already taken extensive measures to ensure the safety of young users.

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the legal standard for a public nuisance under New Mexico law. If the court finds the platforms created such a nuisance, it could impose remedies aimed at curbing alleged harms to young users. Torrez told reporters ahead of the trial that the state plans to ask for $3.7 billion in damages to fund a 15-year mental health plan for teens, including new healthcare facilities and the hiring of providers.

This case is being closely watched as states, municipalities, and school districts across the country pursue similar claims seeking to force changes at the industry level. More than 40 other states and over 1,300 school districts have filed lawsuits accusing Meta and other social media companies of intentionally designing products to be addictive to young people. However, the specific amount of additional damages the Attorney General intends to seek beyond the initial $375 million has not been detailed in court filings.

Meta spokespersons have stated that the New Mexico Attorney General's focus on a single platform is a misguided strategy that ignores the hundreds of other apps teens use daily. The company maintains that rather than providing comprehensive protections, the state's proposed mandates stifle free expression for all New Mexicans. Ultimately, the extent to which the court will order specific operational changes versus monetary penalties remains undetermined as the trial proceeds.

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