OPINION: $375 million verdict signals that New Mexico is open for litigation tourism

This week, a Santa Fe jury hit Meta with a staggering $375 million verdict, dragging New Mexico into worldwide headlines as it hosted the landmark case alleging the tech company’s platforms endangered children. 

As a single mom, I’m keenly aware of the importance of protecting our kids online, but this verdict is a warning signal that New Mexico’s courts are inching closer to the unfortunate title of “Judicial Hellhole,” (an annual designation given by the American Tort Reform Association) unless the state changes its course. 

I started my career working for former Gov. Susana Martinez, and during my time in public service and with the New Mexico Chamber of Commerce, I saw firsthand how the state’s economic potential is directly tied to legal fairness. 

It’s not just big companies that pay when lawsuits spiral out of control — every New Mexican pays $1,147 annually in a “tort tax” — the individual cost of excessive litigation. For an average family of four, that’s more than $4,500 each year. Lawsuit abuse in the Land of Enchantment leads to an estimated loss of more than 20,000 job annually — jobs that New Mexicans can’t afford to lose. 

This burgeoning culture of lawsuit abuse should concern every hard-working family across New Mexico — especially in a state consistently ranked among the poorest in the country. Meta, the very company slapped with this massive verdict, is one of the state’s largest private investors. Since breaking ground on its Los Lunas data center in 2016, mere miles from my high school, the company has invested more than $2.5 billion, surpassing $320 million in economic output from construction and ongoing operations. 

Unfortunately, high-profile verdicts like this send a chilling message to other job creators that might consider building or expanding: New Mexico courts are unpredictable, and your investment may not be safe.

Trial lawyers have been priming the pump for years, though. You can’t drive down the street or turn on the TV or radio without being bombarded by ads urging you to “call now to get the compensation you deserve.” Last year, trial lawyers spent more than $25 million advertising their services to New Mexicans — nearly 35% more than they spent in 2024.

That’s no accident — it’s straight from the trial lawyer playbook. Billboard attorneys clearly see New Mexico as a lucrative place to file lawsuits. Now, those investments are paying off in the form of headline-grabbing verdicts where they’ll get a hefty chunk of the award.

The Meta case itself is a prime example. Attorney General Raúl Torrez partnered with an outside plaintiffs’ firm, Motley Rice, to bring the lawsuit on behalf of the state. While the jury ultimately awarded far less than the whopping $2 billion requested, $375 million represents a huge payday for the lawyers, nonetheless. 

Contingency fee arrangements typically allow private counsel to collect 30-40% of the recovery, but because New Mexico lacks transparency laws requiring public disclosure of these contracts, there’s no way to know just how much they’ll be cashing in.

It’s also worth noting that lawmakers and Gov. Michelle Lujan Grisham took an important step this year toward improving judicial fairness by passing medical malpractice reforms — proof that bipartisan solutions are possible. 

But this verdict — against one of the state’s largest economic developers — shows there’s more work to do on civil justice reforms. Without action, state leaders risk undermining that important progress and further damaging the state’s reputation among job creators.

New Mexico is known across the globe for its green chile, hot air balloons and cultural diversity — let’s not add litigation tourism to that list by letting runaway verdicts fueled by endless trial lawyer ads become the state’s latest attraction.

Bailey Aragon is public affairs director for the American Tort Reform Association. She lived in New Mexico for more than a decade.