Meta Platforms Inc.META
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Court orders $567M payment and reform mandate, rejects Section 230 shield, Meta to appeal.
Impact on stocks 1
Spatial Computing / AR/VR
Meta Platforms Inc.A New Mexico judge has ordered Meta Platforms to pay $567 million into a state abatement fund for juvenile mental health treatment and prevention, the company's largest penalty yet in litigation over social media's effects on children. The ruling by Judge Bryan Biedscheid of Santa Fe County District Court includes $420 million for youth treatment programs and the rest for awareness, prevention, screening, and referral management over five years. It follows a March jury verdict that found Meta liable for 75,000 violations of the state's Unfair Practices Act and imposed a $375 million civil penalty, bringing Meta's total obligation in the case to $942 million. The judge also imposed a five-year reform mandate and rejected Meta's motion to dismiss under Section 230 of the Communications Decency Act, a decision that could weaken the company's legal shield in similar cases. Meta said it will appeal.
Meta Platforms Inc.Court orders $567M payment and reform mandate, rejects Section 230 shield, Meta to appeal.