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Meta faces $3.7B lawsuit in New Mexico over child safety failures on its apps

Market News
04 May 2026
CNBC
Bearish
pluang ai news

Meta is back in court in New Mexico over allegations it failed to protect children from sexual predators on its apps, with the state seeking $3.7 billion in abatement costs and major changes to Meta's platforms. A jury previously found Meta violated state law and ordered $375 million in penalties. The ongoing trial could force Meta to fundamentally restructure its business in New Mexico or risk losing access to users there. This case is seen as a landmark test of social media companies' accountability, similar to past tobacco industry lawsuits.

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