* New Mexico on track to win more than $942 million from

Meta

* Contract governs Motley Rice's potential share of state's

recovery

* Fees depend on amount state recovers

By Mike Scarcella

WASHINGTON, Aug 12 (Reuters) - Law firm Motley Rice stands

to earn $67.1 million in legal fees from New Mexico for

representing the state after a judge ruled Meta Platforms ( META )

fostered social media addiction and other harms on its

platforms, according to a Reuters analysis of a state contract.

A judge last week sided with New Mexico and ordered Meta to pay

$567 million. A jury hearing a different part of the same case

levied $375 million in civil penalties in March, bringing New

Mexico's potential recovery to more than $942 million. Meta has

said it will appeal.

A 2024 contract between Motley Rice and New Mexico, obtained

by Reuters through a records request, says the firm may seek

fees based on the size of Meta's eventual payout. Motley Rice

can ask the court to award it 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.

Under those terms, if New Mexico ultimately recovers $942

million, South Carolina-based Motley Rice could ask for an award

of $67.1 million. The amount, representing 7% of the state's

total recovery, would come out of the funds Meta pays to New

Mexico.

Motley Rice in a statement said it was premature to discuss

payment. "We will proudly continue to support the New Mexico

Department of Justice in holding Meta accountable for violating

the law and putting children at risk," it said.

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.