A contract between the state of New Mexico and the law firm Motley Rice establishes a tiered contingency fee schedule that could allow the firm to request roughly $67.1 million in legal fees if the state ultimately recovers about $942 million from Meta Platforms.
The figures follow two separate rulings in New Mexico litigation alleging harm from Meta’s social media platforms. A judge recently sided with the state and ordered Meta to pay $567 million. In March, a jury in another phase of the same litigation imposed $375 million in civil penalties. Together, those amounts bring the state’s potential recovery to more than $942 million. Meta has said it will appeal.
The 2024 contract between Motley Rice and New Mexico, obtained through a records request, sets out how the firm may seek compensation based on the size of the state’s ultimate recovery. The agreement specifies a sliding fee schedule: 20% of the first $50 million recovered, 15% of the next $50 million, 10% of the next $100 million, and 5% of any amounts over $250 million.
Applying that structure to a total recovery of $942 million produces a potential fee request of $67.1 million for Motley Rice. That figure represents approximately 7% of the state’s total recovery and, under the contract terms, would be paid from the funds Meta provides to New Mexico rather than from the state budget.
The contract requires the firm to petition the court for any fee award, a step that would occur after appeals in the case are concluded. The agreement covers work identified as relating to "social media impacts on mental health harm" and related issues, and it runs through 2028.
It is common practice for states to retain private law firms on complex, high-profile matters on a contingency basis, where outside counsel is paid a portion of any recovery. Motley Rice, based in South Carolina and employing more than 100 attorneys, has a history of representing states in major litigation. The firm’s past work includes participation in nationwide tobacco litigation that culminated in a large 1998 settlement.
In a statement, Motley Rice said it was premature to discuss payment and reiterated its commitment to supporting the New Mexico Department of Justice in pursuing the case and holding Meta to account for alleged legal violations and risks to children. New Mexico Attorney General Ra l Torrez’s office, through chief of staff Lauren Rodriguez, said 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." Rodriguez added that the department is proud of the work done alongside Motley Rice to secure the result for New Mexico.
The firm also represents school districts and other plaintiffs in a coordinated set of federal lawsuits in California that claim Meta and other social media companies designed platforms to foster addiction among young users. A federal appeals court recently allowed those cases to proceed. Separately, a trial in one of the related federal lawsuits - not involving Motley Rice - began in federal court in Oakland.
Several practical considerations remain unsettled. Any fee award to Motley Rice must be formally sought through the court once the appeals process is complete. Meta has announced it will appeal decisions in the New Mexico litigation, and outcomes in appellate courts could affect the size and timing of any recovery and the related fee petition. The contract is in place through 2028 and covers specifically identified work on social media-related mental health claims.
Summary
A 2024 contingency fee contract between New Mexico and Motley Rice outlines a tiered fee schedule that could allow the firm to request $67.1 million if the state recovers roughly $942 million from Meta Platforms. That recovery reflects a recent judge ecision ordering $567 million and an earlier jury award of $375 million; Meta plans to appeal. The fee petition must be submitted to the court after appeals are resolved, and the contract runs through 2028.
Key points
- The fee schedule in the Motley Rice contract is tiered - 20% of the first $50 million, 15% of the next $50 million, 10% of the following $100 million, and 5% of amounts above $250 million.
- If New Mexico ollects about $942 million, Motley Rice could seek $67.1 million, representing about 7% of the total recovery; the requested fees would be paid from the funds Meta pays to the state.
- Sectors impacted include legal services, technology/social media companies, and state government litigation spending and recoveries.
Risks and uncertainties
- Appeals - Meta has said it will appeal recent rulings, and pending appellate proceedings could alter the final recovery and any fee award; impacts are most relevant to the legal and technology sectors.
- Timing of fee petition - Motley Rice must formally petition the court for fees only after appeals conclude, creating uncertainty about when any payment would be resolved and distributed.
- Contract term and scope - The agreement runs through 2028 and is narrowly focused on work related to social media impacts on mental health harm, limiting the timeframe and scope for fee claims.