Meta Platforms, Inc. (META) has been ordered to pay $375 million by a court in New Mexico for misleading users over the safety of its platforms for children, reports said.
In the verdict, the jury found that Meta, which owns Facebook, Instagram and WhatsApp, was liable for the way in which its platforms endangered children. These platforms allegedly exposed them to sexually explicit material and contact with sexual predators.
As per the verdict, Meta, led by Chairman and Chief Executive Officer Mark Zuckerberg, was responsible for violating New Mexico's Unfair Practices Act as it misled the public about the safety of its platforms for young users.
The ruling was issued following a six-week trial in which state authorities accused the tech major of failing to protect minors.
The total civil penalty of $375 million is for thousands of violations of the act, each with a maximum penalty of $5,000.
As per the reports, this is the first time a US state has successfully sued the social media giant over child safety issues.
Meanwhile, Meta stated that it disagrees with the verdict and intends to appeal.
Meta spokeswoman reportedly said, "We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online.'
During the trial, internal Meta documents had been presented, along with testimony from former employees, which indicated that the company had been aware of child predators using its platforms.
Meanwhile, Meta argued that it has worked over the years to promote safe experiences for minors.
Instagram earlier released Teen Accounts, giving young users more ways to control their experience, and recently launched a feature to alert parents if their children are looking for self-harm content.
On the Nasdaq, Meta shares closed Tuesday's regular trading 2% lower at $592.92. In the overnight trading, the shares were gaining 0.9 percent, reaching $598.04.
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