NEWS
Outside law firm could pocket up to $68 million from verdicts in New Mexico's Meta lawsuit
Contingency fee percentage is smaller than in previous high-profile state cases
SANTA FE 鈥 New Mexico鈥檚 victory in a landmark case that exposed the dangers of social media use for minors could mean a $942 million windfall for the state.
But up to $68 million of that amount 鈥 awarded under two separate verdicts 鈥 could end up going to the South Carolina-based law firm that helped the state bring the 2023 lawsuit.
Lauren Rodriguez, chief of staff for Attorney General Ra煤l Torrez, confirmed the amount this week, saying the outside firm was entitled to no more than 7.12% of the total verdict under contingency fee caps implemented by Torrez.
But she also pointed out the attorney fees are much smaller, percentage-wise, than New Mexico paid out in other high-profile consumer protection lawsuits.
鈥淣ot only is that amount far less than New Mexico鈥檚 historical average, but it is also substantially less than the contingency fees for complex state-led litigation鈥 in cases dealing with tobacco and opioid use, Rodriguez said.
Specifically, New Mexico鈥檚 2017 settlements with several pharmaceutical manufacturers and distributors for their role in the state鈥檚 opioid crisis resulted in a roughly $249 million payout for outside counsel fees 鈥 or about 28% of the total settlement revenues.
That payout prompted the Legislative Finance Committee to caution that the state鈥檚 procurement code for outside counsel contracts in state lawsuits.
New Mexico isn鈥檛 the only state to rely on outside counsel for complex consumer protection lawsuits, though the for possible conflicts of interest.
Torrez himself expressed concern over the state鈥檚 reliance on outside law firms during his 2022 campaign for attorney general, saying he would work to rebuild the office鈥檚 in-house litigation capabilities and only hire outside firms in rare circumstances.
But the Democratic attorney general has continued the practice of hiring outside firms in some cases, including the lawsuit against social media titan Meta.
A state district judge last week ordered Meta, which owns Facebook and Instagram, to pay New Mexico a total of $567 million to address harm caused to teenagers by the company鈥檚 platforms. The judge also directed Meta to implement new usage limits, such as no more than 90 hours of social media use per month for individuals under age 18.
The verdict, which Meta said it plans to appeal, came several months after a Santa Fe jury ordered Meta to pay $375 million in civil penalties.
The two verdicts were touted by Torrez and lawsuit supporters as key to funding programs focused on youth mental health awareness, prevention and treatment efforts, though state lawmakers will likely have the final say on how the money is spent.
Attorneys with Motley Rice, the South Carolina-based plaintiffs litigation firm, played a key role in arguing New Mexico鈥檚 case in the Meta lawsuit. The firm also represents school districts and other clients who have joined a federal class-action lawsuit against Meta, according to its website.
After District Judge Brian Biedscheid announced his ruling last week, three Motley Rice trial attorneys who worked on the case issued a statement saying the case would protect New Mexico children and could lead to corporate change.
鈥淔or too long, Meta has treated children as collateral damage in its pursuit of profit,鈥 the in their statement.
Meanwhile, lawmakers also included a $6.5 million appropriation for the New Mexico Department of Justice in a budget bill approved this year.
But Rodriguez said that funding was not used to offset the costs of the Meta litigation, and instead would be used to pay for in-house consumer protection lawsuits and cases intended to restore federal funding to the state.
Since January 2025, legal action led by state lawyers has helped restore more than $885 million in federal funding for transportation, emergency management and cancer research, said Rodriguez.
Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.