Law firm Motley Rice stands to earn $67.1 million in legal fees from New Mexico for representing the state in a case against Meta Platforms. A judge recently ruled that Meta fostered social media addiction and other harms on its platforms, ordering the company to pay $567 million. New Mexico's potential recovery, including $375 million in civil penalties levied in March, totals over $942 million.
Case Background
Motley Rice's fees are based on a 2024 contract with New Mexico, which allows the firm to seek 20% of the first $50 million of the state's recovery, 15% of the next $50 million, 10% of the next $100 million, and 5% of any amounts over $250 million. If New Mexico ultimately recovers $942 million, Motley Rice could ask for an award of $67.1 million, representing 7% of the state's total recovery.
Contract Terms
The contract, which expires in 2028, covers work Motley Rice is handling for New Mexico on 'social media impacts on mental health harm' and related issues. The firm must formally petition the court for fees after appeals in the case have concluded. According to Lauren Rodriguez, New Mexico Attorney General Raúl Torrez's chief of staff, the fees Motley Rice could receive would be 'well below New Mexico's historical average and substantially below the 19% to 35% fees seen in other complex, state-led litigation.
