Two high-profile court cases in New Mexico and Los Angeles have resulted in significant losses for social media giant Meta, highlighting the company's struggles to adequately police Facebook and Instagram. A jury in Santa Fe, New Mexico, found that Meta misled users about the safety of its social apps for children being targeted by online predators, and a jury in Los Angeles ruled against Meta and Google's YouTube in a personal injury trial, stating their negligence was a significant factor in causing mental health-related harms. Timothy Edgar, a lecturer at Harvard Law School, called these outcomes a "major watershed event" that represent a significant shift in how Americans view Big Tech. Wall Street has been skeptical about Meta's AI strategy and high costs, with the company planning to spend up to $135 billion on capital expenditures this year despite its AI models being far behind rivals Google, OpenAI and Anthropic. The rulings also point to a potential reckoning with the Section 230 provision of the Communications Decency Act that governs free speech.