Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
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Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)

A trial beginning in New Mexico on Monday could prompt a judge to order sweeping changes to how Facebook, Instagram and WhatsApp operate - a move Meta Platforms has warned could force it to withdraw from the state.

The case, which will be tried before a judge in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, a Democrat, accusing the social media giant of designing its products to addict young users and failing to protect children from sexual exploitation on its platforms.

At the heart of the trial is whether Meta’s platforms have created a "public nuisance" under New Mexico law. That finding would allow the judge to order wide-ranging remedies aimed at curbing alleged harms to young users. The case is being closely watched as states, municipalities and school districts across the country pursue similar claims seeking to force changes at the industry level.

Monday's trial marks the second phase of New Mexico's lawsuit. A jury in March found Meta violated the state’s consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. ‌It ordered the ‌company to pay $375 million in damages.

Criticism of children's safety on social media has been mounting for years. ‌On ⁠Wednesday, Meta warned ⁠investors that legal and regulatory blowback in the European Union and the US "could significantly impact our business and financial results."

SWEEPING REMEDIES AT STAKE

Torrez’s office is expected to seek both billions of dollars more in damages and an order requiring Meta to make substantial changes to its platforms for New Mexico users, according to court filings.

Meta has said it has already addressed many of the state's concerns and taken extensive measures to ensure its young users are safe. The company said in court filings last week that many of the changes Torrez’s office is seeking are impossible for it to comply with and may force it to withdraw from the state entirely.

"The New Mexico Attorney General’s focus on a single platform is a misguided strategy ⁠that ignores the hundreds of other apps teens use daily," a Meta spokesperson said in a statement ahead ‌of the trial. "Rather than providing comprehensive protections, the state's proposed mandates infringe on parental rights ‌and stifle free expression for all New Mexicans."

A ‘PUBLIC NUISANCE’

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the standard for a public nuisance ‌under New Mexico law, which would allow the court to impose remedies aimed at abating the alleged harm.

A public nuisance claim targets ‌activities that unreasonably interfere with the health and safety of a community. Classic examples include blocking a public road, polluting a waterway or emitting noxious fumes.

State governments have invoked public nuisance law in recent decades to pursue a broader range of industries, including litigation tied to tobacco, opioids, climate change, and vaping, said Adam Zimmerman, a professor at USC’s Gould School of Law.

New Mexico's case is among a growing number of lawsuits accusing Meta and other social media companies ‌of intentionally designing products to be addictive to young people.

While many cases have been filed by families over specific injuries to individuals, more than 40 other states and over 1,300 school districts have ⁠filed lawsuits seeking court-ordered changes ⁠and damages under public nuisance law.

New Mexico said it plans to ask the judge to order Meta to make changes including verifying users' ages; redesigning its algorithm to promote quality content for minors; and ending autoplay and infinite scrolling for minors.

"It will be an opportunity for us to explore more deeply the size and scale and effectively the monetary value of the public nuisance harm that was a product of this business's behavior for the last, you know, 10 or 15 years," Torrez told reporters at a press conference on Thursday ahead of the trial.

The company has said in court filings that it cannot have created a public nuisance because it has not interfered with a public right. It also said there is no scientific evidence to support the idea that social media has caused mental health problems, and that many of the state’s requests are "technologically impractical or completely impossible."

In a public nuisance case, the state can also seek money damages to abate the harm. That sum could be substantial when the impact is said to have affected large segments of the population. Torrez’s office has not detailed the amount it will seek.

Meta said in court filings New Mexico plans to ask for $3.7 billion in damages to fund a 15-year mental health plan including new healthcare facilities and hiring providers, a request it said would require it pay for mental health care for all teens in the state regardless of the cause of their needs.



Four Takeaways from Musk vs OpenAI Trial

 OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
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Four Takeaways from Musk vs OpenAI Trial

 OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)

After three weeks of intense hearings, Silicon Valley's first major AI trial -- over the lawsuit filed by Elon Musk against the co-founders of OpenAI -- is nearing an end. It is expected to go to the jury on Monday.

Here are four scenes that defined the trial:

Musk blames his own naivety

At the opening of the trial on April 28, Musk portrayed himself as a selfless benefactor and Good Samaritan concerned with protecting humanity from an AI that, if left in the wrong hands, could "kill us all."

"I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding," the SpaceX CEO said regarding OpenAI's founding in 2015.

"I gave $38 million essentially for nothing, which they used to build a company worth $800 billion. I was literally an idiot," he said, blaming his own naivety.

Musk was visibly annoyed during the trial as he called out OpenAI's lawyer for asking questions "designed to trap me."

"Mr. Musk, you are a brilliant man," said OpenAI's lawyer William Savitt, as he doubled down on his attacks, disguised with a show of courtesy.

Altman strikes back

Swapping his usual T-shirt, jeans and sneakers for a dark suit and tie, OpenAI CEO and co-founder Sam Altman sat stone-faced in the front row of the Oakland courtroom for most of the proceedings.

But on May 12, it was finally his turn. Musk's lawyer, Steven Molo, was waiting for him, asking if he had always told the truth.

Altman responded: "I'm sure there have been times in my life when I didn't."

But then, with a blank expression and wide eyes, he struck back, saying Musk in 2017 had demanded "90 percent of the equity" and "refused to commit in writing" to sharing power.

Altman said he had no choice as "we did not think that artificial general intelligence should be under the control of a single person."

Brockman's notebook

Every day in the courtroom, Greg Brockman, the president and co-founder of OpenAI, took extensive notes on yellow notepads.

During his questioning on May 4, old journals he kept from years ago took center stage, with Musk's lawyer highlighting some of the most embarrassing excerpts.

Brockman wanted to make money, writing, "financially, what will take me to $1B?" He also wanted "to convert to a b-corp without him (Musk)," a reference to a private company with social and environmental standards.

The journal recorded his concerns about a plan to "steal the non-profit from him (Musk)" as "pretty morally bankrupt."

"There's nothing in there I'm ashamed of," Brockman hit back, claiming that the journal did not include details of an outburst from Musk in 2017.

"I really thought he was going to hit me," Brockman said of the incident. Musk did not touch him, but took a painting of a Tesla, a gift from one of the co-founders, down from the wall and left the room, he said.

Brockman's shares in the company are now worth $30 billion.

The secret go-between

Shivon Zilis -- the mother of four of Musk's children -- is a woman in the shadows, rarely appearing in public.

So her May 6 appearance in the courtroom attracted intense curiosity.

Zilis, who was appointed to the OpenAI board from 2020 to 2023, was asked about her awkward role as both Musk's colleague at Neuralink and Altman's friend.

At the time, her mysterious relationship with Musk was secret. Their children were conceived through in vitro fertilization.

OpenAI accuses her of working as a mole for Musk.

Zilis responded to questions briefly and, at times, sarcastically.

"Relationship is a relative term," she said when asked about her relationship with Musk, before conceding, "there have been romantic moments."

But ultimately, her testimony may matter less than the content of her messages to Musk and Altman.

Those could lead the jury to conclude that Musk, having been sufficiently informed by Zilis, knew of OpenAI's direction long before 2023. If so, his lawsuit could be thrown out before the jury even starts deliberating the merits of the case.


YouTube, Snap and TikTok Settle School District’s Social Media Addiction Claims

The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
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YouTube, Snap and TikTok Settle School District’s Social Media Addiction Claims

The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)

Alphabet's YouTube, Snap and TikTok have reached settlements in the first case set for trial in litigation seeking to force social media platforms to cover the costs school districts incur to combat a youth mental health crisis they say the companies fueled.

The settlements were detailed in court filings on Friday in federal court in Oakland, California, and resolve claims by a Kentucky school district that is still due to take Facebook and Instagram parent Meta Platforms to trial on June 15.

Terms of the settlements with ‌Breathitt County School District ‌in rural Eastern Kentucky were not disclosed.

"This ‌matter ⁠has been amicably resolved ⁠and our focus remains on building age-appropriate products and parental controls that deliver on that promise," a YouTube spokesperson said in a statement.

Snap, the parent company of Snapchat, said it resolved the case amicably. TikTok did not immediately respond to a request for comment.

More than 3,300 lawsuits involving addiction claims are pending in California state court against the social media companies. ⁠Another 2,400 cases brought by individuals, municipalities, states and ‌school districts have been centralized in California ‌federal court.

In a landmark trial, a Los Angeles jury on March ‌25 found Meta and Alphabet's Google negligent for designing social media platforms that ‌are harmful to young people. It awarded a combined $6 million to a 20-year-old woman who said she became addicted to social media as a child.

The companies have denied the allegations and say they take extensive steps to keep ‌teens and young users safe on their platforms.

Breathitt is one of about 1,200 school districts suing the social ⁠media companies ⁠over claims they caused a mental health crisis among students and then saddled schools with the fallout.

The school district has been seeking over $60 million to cover the costs of counteracting social media's impact on students’ mental health and to fund a 15-year mental health program to abate the problem.

It also seeks a court order requiring the companies to modify their platforms to reduce addictive features.

Its case is a bellwether, or test case, for over a thousand similar school districts' lawsuits.

Judges and attorneys often use bellwether verdicts to assess the potential value of remaining claims and guide settlement talks. Typically, several bellwether cases are tried before reaching a broader resolution.


Foxconn Logs Quarterly Net Profit Jump on AI Demand

FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
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Foxconn Logs Quarterly Net Profit Jump on AI Demand

FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo

Taiwanese tech hardware giant Foxconn on Thursday announced a 19-percent jump in quarterly net profit as the booming market for artificial intelligence servers drives growth, despite geopolitical uncertainty.

Foxconn, whose official name is Hon Hai Precision Industry, has gone beyond assembling low-margin iPhones to making AI servers for Nvidia, along with electric vehicles and robots.

Soaring global demand for generative AI tools is boosting business for Foxconn, even as the war in the Middle East has threatened supply chain volatility.

On Thursday the company said net profit for January-March came to NT$49.9 billion (US$1.6 billion), up from NT$42.1 billion in the same period the previous year.

The figure beat estimates of $48.4 billion in a Bloomberg survey of analysts, AFP reported.

Foxconn said it expects "strong demand for AI servers" to continue this year, forecasting "high double-digit quarter-on-quarter growth" for AI rack shipments in the second quarter.

When the company reported its annual results in March, chairman Young Liu had shrugged off concerns that market volatility caused by global conflict would dent profits.

Taiwanese contract chipmaker TSMC has also said it does not expect geopolitics to impact its supply of key materials such as helium and hydrogen in the near term.

On Wednesday, some of Foxconn's factories in North America suffered a cyberattack, according to a company statement.

"The affected factories are currently resuming normal production," after a response from the cybersecurity team, said the statement dated Wednesday afternoon in Taiwan.

TechCrunch and other media outlets reported that ransomware gang Nitrogen had claimed responsibility for the hack on the dark web.