U.S. federal court orders Meta to make an additional payment to a damages fund worth 804.8 billion won

[Financial News] A U.S. federal court has ordered Meta Platforms to make an additional payment of more than 800 billion won to a damages fund, saying the company failed to protect children and teenagers.
According to The Wall Street Journal (WSJ) and others on the 6th local time, the U.S. District Court in New Mexico said Meta must create a new abatement fund worth $567 million, or about 804.8 billion won.
Most of the fund will be used to treat people harmed by Meta's social media platforms. It will also support efforts to raise awareness, connect users with experts, and improve quality.
Meta must also implement additional safety measures, including limiting the amount of time minors can spend on Facebook and Instagram, turning off default displays of the number of likes on minors' photos, and warning users about the risks of using the platforms.
Judge Brian Biedscheid of the U.S. District Court in New Mexico said, "Meta was not the only company to cause these problems, but the evidence shows that Meta's social media platforms made a significant contribution to the mental health crisis facing the state's teenagers."
He added, "Given the broad impact of the harm and the complex nature of the remedies, the creation of the fund was necessary." WSJ also noted that the fund is slightly smaller than the $779.5 million sought by state authorities.
Meta said it would appeal the ruling. The company stated, "We are confident in our track record of protecting teenagers online," and added, "We will defend ourselves against claims that distort the facts."
The lawsuit was filed by New Mexico Attorney General Raúl Torrez. He argued that Meta allowed children to be exposed to sexual content and left them vulnerable to predators.
In March, a jury also found that Meta violated the state's consumer protection law and ordered it to pay $375 million, or about 53.2 billion won, in civil damages. Torrez welcomed the ruling, saying, "New Mexico has played a pioneering role," and "This has now set a precedent that other states and countries with similar concerns can follow."
Meta is facing thousands of similar lawsuits for allegedly prioritizing growth over child protection. According to WSJ, this was the first such case to go to trial in New Mexico.
Next week, jury selection is also scheduled in Oakland, California, in a case brought by attorneys general from four states seeking more than $1 trillion in damages.
CNBC reported, "Experts call this lawsuit the tobacco trials of the social media industry," adding, "In the 1990s, tobacco companies paid billions of dollars in damages after being accused of misleading the public about the safety and potential harms of their products, and their influence later weakened sharply."
 


[email protected] Reporter Lee Seok-woo, International Desk Reporter