New Mexico is set to enter the second phase of its legal battle with Meta Platforms, the parent company of Facebook and Instagram, with a trial beginning Monday in Santa Fe that could result in the social-media giant being required to pay $3.7 billion. This follows a jury verdict in March that found Meta liable for failing to protect children in the state from sexual exploitation and other online harms.

The initial trial, which lasted seven weeks before Chief Judge Bryan Biedscheid of the 1st Judicial District Court, ended with a jury awarding the state $375 million in civil penalties under New Mexico’s Unfair Practices Act. The verdict was reached in less than a day and marked a significant legal setback for Meta.

The current trial focuses on whether Meta must finance measures to address the alleged harms caused by its platforms. The state’s attorneys are seeking an order requiring Meta to fund an extensive plan aimed at providing mental health and behavioral services for teenagers in New Mexico, amounting to $3.7 billion.

Meta, in court filings submitted last Thursday, contends that the state’s demands are “practically infeasible” and warned they could force the company to withdraw its services, including Facebook, Instagram, and WhatsApp, from New Mexico. The company disputes the extent of its responsibility and the scale of the financial commitment the state is seeking.

The original lawsuit, filed in 2023 by New Mexico Attorney General Raúl Torrez against Meta Platforms and CEO Mark Zuckerberg, alleges that the company failed to protect children from sexual abuse, online solicitation, and human trafficking. The suit includes claims under the state’s Unfair Practices Act and a public nuisance claim.

Opening statements for the public nuisance portion of the trial are expected to take place on Monday. This bench trial, without a jury, will continue through May 22 under Judge Biedscheid. The outcome will determine whether Meta must fund programs designed to mitigate the impact of social media on children’s mental health and other alleged harms in New Mexico.