The contract says the firm must formally petition the court for fees, which would happen after appeals in the case have concluded. The contract expires in 2028 and covers work Motley Rice is handling for New Mexico on "social media impacts on mental health harm" and related issues.
It is common for states to partner with private law firms for high-profile, complex investigations and lawsuits. The firms typically work on a contingency basis, taking a portion of any recovery.
Lauren Rodriguez, New Mexico Attorney General Raúl Torrez’s chief of staff, in a statement 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."
"The New Mexico Department of Justice is proud of the work Motley Rice has done alongside our internal litigation team to achieve this historic result for the people of New Mexico," Rodriguez said.
Motley Rice, which employs more than 100 attorneys, has frequently represented states in cases against corporate defendants, including as far back as the nationwide tobacco litigation that ended in a massive 1998 settlement.
The firm separately represents school districts and other plaintiffs in coordinated federal lawsuits in California claiming Meta and other social media companies designed social media platforms to addict young users. A federal appeals court on Monday said those cases can move forward.
A trial in one of the lawsuits, not involving Motley Rice, began on Wednesday in the federal court in Oakland.
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