Meta Loses Twice in Court; $375M Child Safety Verdict and First-Ever 'Addictive by Design' Ruling
Two juries delivered landmark verdicts against Meta in the span of 48 hours. On March 24, a New Mexico jury ordered Meta to pay $375 million for enabling child sexual exploitation on its platforms — the first successful state lawsuit against the company on child safety grounds. The jury found that Meta had actual knowledge that its platforms were being used to facilitate the sexual abuse of minors and failed to act. (Source: CNBC)
The following day, a Los Angeles jury found both Meta and Google negligent under an “addictive-by-design” legal theory, awarding $6 million to a 20-year-old plaintiff who alleged Instagram and YouTube caused documented psychological harm during adolescence. The verdict marks the first time a jury has validated the theory that social media platforms can be held liable for designing products that are inherently addictive to minors. (Source: NPR)
The L.A. verdict functions as a test case for approximately 2,000 pending lawsuits against social media companies consolidated in federal multi-district litigation. Attorneys for the plaintiffs called it “the first crack in the wall” and predicted the twin verdicts would accelerate settlement negotiations. Meta's stock dropped nearly 8% in the two days following the rulings. (Source: CNBC)
Meta issued a statement calling the New Mexico verdict “inconsistent with the evidence” and confirming it would appeal. The company did not comment on the L.A. verdict beyond noting it “disagrees with the outcome.” Legal analysts noted that Meta now faces potential exposure running into the tens of billions across the consolidated cases if the addictive-by-design theory holds on appeal. (Source: Washington Post)

