Meta ordered to allocate $420 million for teen therapy after court penalty and state settlement

A New Mexico judge has ordered Meta, the parent company of Facebook and Instagram, to pay a $567 million penalty for alleged contributions to teen addiction and mental-health problems. Of that sum, $420 million is earmarked for treatment services for minors affected by the platforms, and Meta has indicated it will appeal the decision.

Three weeks after the ruling, Meta reached a settlement with attorneys general from 47 states and the District of Columbia. The agreement obligates the company to provide up to $18 billion to address comparable claims, including the development of safeguards for teenage users and expanded parental controls. The settlement also allocates substantial funds toward counseling and therapy for affected youths.

"The settlement represents historic relief for a generation in crisis," said one of the state attorneys general involved in the case.

Meta’s appeal and the terms of the settlement are expected to shape future regulatory and corporate approaches to social-media use among teenagers.