SANTA FE, New Mexico: A New Mexico jury has ordered Meta Platforms to pay US$375 million in civil penalties after finding the company violated state law in a case centred on user safety and child exploitation claims.

The verdict, delivered after less than a day of deliberations, marks the first time a jury has ruled on such allegations against Meta. The lawsuit, brought by the state's attorney general, accused the company of misleading users about the safety of Facebook, Instagram, and WhatsApp while allowing harmful content and predatory behaviour on its platforms.

"We respectfully disagree with the verdict and will appeal," a Meta spokesperson said in a statement. "We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content."

New Mexico Attorney General Raúl Torrez described the outcome as a landmark ruling.

"In a statement, New Mexico Attorney General Raúl Torrez, a Democrat, called the verdict "a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety."

"The substantial damages the jury ordered Meta to pay should send a clear message to big tech executives that no company is beyond the reach of the law," he said.

The decision followed a six-week trial in Santa Fe, where state attorneys argued that Meta failed to protect minors and allowed predators to connect with underage users, sometimes leading to real-world abuse.

"Over the course of a decade, Meta has failed over and over again to act honestly and transparently," Linda Singer, an attorney for the state, told the jury during closing arguments on Monday. "It's failed to act to protect young people in this state."

Meta denied the allegations during the trial, saying it has implemented extensive safety measures and has been transparent about the risks associated with online platforms.

"What the evidence shows is Meta's robust disclosures and tireless efforts to prevent harmful content. And these disclosures mean that Meta did not knowingly and intentionally lie to the public," Kevin Huff, an attorney for Meta, told the jury on Monday.

The jury found that Meta violated New Mexico's consumer protection law by engaging in unfair or deceptive practices and acting in an unconscionable manner. It identified 75,000 violations and imposed a $5,000 penalty for each.

The case stems from a 2023 undercover investigation conducted by the attorney general's office, in which investigators created accounts posing as users under 14. Those accounts were reportedly contacted by adults seeking explicit content and received inappropriate material, leading to criminal charges against multiple individuals.

The state argued that Meta was aware of risks related to sexual exploitation and mental health harm but failed to implement basic safeguards such as effective age verification.

Meta has argued that it is protected from liability under the U.S. Constitution's First Amendment and Section 230 of the Communications Decency Act, which limits lawsuits over user-generated content. A judge rejected those arguments, allowing the case to proceed to trial.

In a second phase of the case scheduled for May, the state will seek further court orders requiring Meta to make changes to its platforms and may pursue additional penalties.

The verdict comes as Meta faces broader legal challenges across the United States over the impact of its platforms on young users' mental health, with multiple lawsuits seeking significant damages.