Meta was previously ordered to pay $375 million in damages to New Mexico in March after a jury found the technology company liable for exposing children to risks, including vulnerability to predators on its platforms.
Meta said it disagreed with the latest ruling and would appeal.
“We work hard to keep people safe on our platforms,” the company said, adding that it had been transparent about the challenges involved in identifying and removing harmful content and malicious actors.
New Mexico Attorney General Raul Torrez filed a lawsuit against Meta in 2023, alleging that the company had failed to adequately protect children from online risks across Facebook, Instagram and WhatsApp.
During closing arguments, prosecutor Linda Singer told jurors that Meta’s algorithms had directed adults towards content posted by teenage users, while the company allegedly withheld internal findings concerning risks to young people.
In March, a jury found Meta in violation of the state’s Unfair Practices Act after determining that the company had misled consumers about the safety of its products for children.
Mr Torrez said the case was aimed at protecting children and holding major technology companies accountable for practices that could put young people at risk.
Under the latest order, around three-quarters of the $567m payment will be allocated to mental health treatment over five years. The remaining funds will support programmes covering awareness and prevention, screening and assessment, referrals and coordination, as well as implementation and evaluation.
Meta said it remained confident in its record of protecting teenagers online and would continue to challenge what it described as claims that did not accurately reflect the facts.
The company will also be required to provide the court with compliance updates twice a year.
The ruling further directs Meta to modify certain product features and continue efforts to prevent children under 13 in New Mexico from accessing Facebook and Instagram.
Age-verification requirements for social media platforms have gained support among regulators worldwide, although implementing such measures has proved challenging.
New Mexico Judge Bryan Biedscheid noted in his ruling that teenagers can be particularly vulnerable to engagement-focused features such as autoplay, infinite scrolling, visible like counts, push notifications and algorithmic recommendations.
The judge ordered Meta to limit push notifications and usage for users under 18 to 90 hours per month — an average of about three hours a day — and to hide like counts.
Thousands of lawsuits have been filed across the United States seeking to hold social media companies accountable for alleged harm to children and their mental health.
More than 30 US states are pursuing similar cases against Meta, with a potential trial scheduled to begin in August in Oakland, California.
In July, a US teenager withdrew a lawsuit against Meta shortly before trial. The teenager also reached confidential settlements with YouTube, TikTok and Snap.
The case had been regarded as a bellwether trial that could have influenced how thousands of similar lawsuits are resolved nationwide.
The first bellwether trial concerning social media’s alleged impact on mental health concluded in March, when a Los Angeles jury ordered Meta and Google to pay $6 million to a 20-year-old woman.
In May, Meta, Snap, TikTok and YouTube also reached confidential settlements with a school district in Kentucky.
