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Meta $375M verdict sent shockwaves through Silicon Valley Tuesday as a New Mexico jury ordered Meta Platforms to pay $375 million in civil penalties, finding the tech giant misled users about platform safety and enabled serious harm, including child sexual exploitation.

The ruling marks the first time a jury has held Meta liable for actions carried out on its platforms—an inflection point in the long-running debate over Big Tech accountability.

A Historic Blow to Big Tech

New Mexico Attorney General Raúl Torrez called the decision a watershed moment.

“The jury’s verdict is a historic victory for every child and family who has paid the price for Meta’s choice to put profits over kids’ safety,” Torrez said, accusing company leadership of ignoring internal warnings and misleading the public.

The lawsuit, filed in December 2023, followed a two-year investigation that exposed how Facebook and Instagram had been used as marketplaces for child sex trafficking. That reporting became a cornerstone of the state’s legal case.

Inside the Jury’s Decision

Maximum Penalties for Consumer Law Violations

Jurors imposed the maximum penalty allowed—$5,000 per violation—bringing the total to $375 million under New Mexico’s consumer protection laws. The panel found Meta liable on both claims under the state’s Unfair Practices Act.

The nearly seven-week trial featured testimony from law enforcement officials, child safety experts, and current and former Meta employees. After closing arguments, jurors deliberated for roughly a day before delivering their verdict.

“This wasn’t surprising,” said John W Day, noting growing public concern over social media’s reach and risks. “There’s a deep undercurrent of fear and frustration.”

Evidence of Harm and Internal Warnings

“Operation MetaPhile” and Platform Risks

At the heart of the case was a trove of internal documents and testimony obtained by the state, revealing repeated warnings from employees and outside experts about dangers on Meta’s platforms.

Jurors heard details of a 2024 sting operation—dubbed “Operation MetaPhile”—that led to the arrest of three men accused of targeting children online and attempting to meet them in person.

Investigators also pointed to Meta’s 2023 move to encrypt Facebook Messenger, arguing it obscured critical evidence and made it harder to detect crimes such as grooming and the exchange of child sexual abuse material.

Witnesses from the National Center for Missing and Exploited Children testified that Meta’s reporting systems were flawed, producing large volumes of low-quality “junk” reports due to heavy reliance on artificial intelligence—reports that law enforcement said were often unusable.