Meta disputes New Mexico’s $3.7 billion teen mental health proposal in ongoing social media trial

An attorney representing Meta Platforms argued on Wednesday that New Mexico’s proposed $3.7 billion remedy for teen mental health harms is excessive, claiming it would effectively require the company to fund mental healthcare for all teenagers in the state, rather than only those allegedly affected by Meta’s platforms.

During the eighth day of the trial, Meta lawyer Alex Parkinson questioned the state’s expert witness, economist Kelly O’Connell, in a lawsuit accusing the company of designing its social media platforms to be addictive for young users. Parkinson challenged O’Connell’s estimate for a 15-year mental health program that New Mexico contends Meta should finance to address the alleged harm caused to teenagers.

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Parkinson questioned O’Connell on whether she recognized that the proposed program would require Meta to cover mental healthcare costs for all teenagers in the state, regardless of the underlying cause of their mental health issues.

“You haven’t at all attempted to determine what proportion of the 3.7 billion is completely unrelated to social media?” Parkinson ​asked O’Connell, who said she hadn’t.

O’Connell’s estimate of the $3.7 billion proposal includes more than $2.8 billion allocated specifically for mental health treatment programs for young people aged 11 to 17 in the state. The proposed initiative also includes funding for public awareness efforts, mental health screenings, and referral services.

In the non-jury trial, the state is asking Santa Fe Judge Bryan Biedscheid to determine whether Meta’s platforms constitute a “public nuisance” under New Mexico law — a ruling that could allow the court to impose broad remedies intended to address the alleged harms caused to young users.

The case originates from a lawsuit filed by Democratic New Mexico Attorney General Raúl Torrez, who accused Meta of intentionally designing its platforms to be addictive for young users and failing to adequately protect children from sexual exploitation.

The ongoing proceedings, which Reuters is following through Courtroom View Network, represent the second phase of New Mexico’s lawsuit against the company. In March, a jury found that Meta violated the state’s consumer protection laws by misleading users about the safety of Facebook, Instagram, and WhatsApp for children and teenagers, and ordered the company to pay $375 million in damages. Meta has stated that it plans to appeal the decision.

The state presented expert witnesses who testified that teenagers in New Mexico are facing a growing mental health crisis, linking rising rates of sleep deprivation, eating disorders, and suicide-related risk factors to social media use.

New Mexico concluded its arguments on Wednesday in this phase of the trial, which began on May 4. Meta is expected to present its own witnesses in the coming days, while Judge Bryan Biedscheid will issue a written decision at a later stage.

Along with seeking funding for the proposed mental health program, the state is asking the judge to require Meta to implement changes to its platforms. According to court filings, these measures could include stricter age verification systems, adjustments to recommendation algorithms to promote higher-quality content for minors, and the removal of autoplay and infinite scrolling features for younger users.

The New Mexico lawsuit is one of thousands of legal cases filed against Meta and other social media companies, accusing them of creating addictive products that have contributed to a broader mental health crisis among young people across the United States.

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