Meta ordered to pay $567 million in New Mexico child safety case

Summary

CNBC's Julia Boorstin reports on a New Mexico judge ordering Meta to pay $567 million into an abatement fund after a jury found the company violated state consumer protection laws related to child safety. Meta plans to appeal, and shares edged higher as the ruling was milder than the $3.7 billion sought and did not force an immediate algorithm overhaul. Boorstin also highlights Meta's $2.4 billion quarterly legal expenses and questions whether the legal battles could distract CEO Mark Zuckerberg from the company's AI ambitions.

• New Mexico judge orders Meta to pay $567 million into a fund for youth mental health treatment.
• Court also mandates design changes to limit underage access and minimize harm to users under 18.
• Meta says it will appeal and disputes the ruling; shares trade about 1% higher as the outcome was milder than feared.
• The awarded amount is far below the $3.7 billion sought and does not require a total algorithm overhaul.
• Meta recorded $2.4 billion in quarterly legal expenses, contributing to a profit decline.
• Other lawsuits target TikTok, YouTube, and Snap, with upcoming trials for Meta and other platforms.
• The legal overhang raises questions about distraction for CEO Mark Zuckerberg as he tries to advance Meta's AI and cloud strategy.