Meta Faces $942M Judgment: Lawyers Could Earn $67M

A recent judicial ruling has found Meta Platforms liable for fostering social media addiction and other harms, ordering the company to pay New Mexico $567 million. This judgment, combined with a prior $375 million civil penalty, brings New Mexico's potential recovery to over $942 million. Meta has indicated its intention to appeal the decision. The state's legal representation, law firm Motley Rice, is positioned to receive substantial fees from this outcome.

According to a contract obtained by Reuters, Motley Rice could be awarded up to $67.1 million, which equates to about 7% of the total potential recovery. The fee structure allows the firm to seek a percentage of the funds Meta pays, with rates decreasing as the recovery amount increases. This arrangement is typical for states engaging private firms on contingency for complex cases.

New Mexico's Attorney General's office stated that the potential fees for Motley Rice are "well below New Mexico's historical average" and competitive with other complex litigation. Motley Rice has a history of representing states in major lawsuits, including past tobacco litigation. The firm is also involved in separate federal lawsuits alleging Meta designed platforms to addict young users.