Meta ordered to pay New Mexico $25 billion over Facebook privacy claims
Judge imposes massive penalty after jury finds more than 43 million consumer-law violations
A New Mexico judge ordered Meta Platforms to pay the state $25 billion on October 21 after a jury found the Facebook parent liable for misleading consumers about the privacy of their personal information.
The case grew out of the Cambridge Analytica scandal, in which data from as many as 87 million Facebook users was harvested through a third-party app. The now-defunct political consulting firm used Facebook information for voter profiling and targeted political advertising, including work connected to President Trump's 2016 presidential campaign.
Jurors concluded in September that Meta and its leadership made 26 misleading statements concerning data privacy and other issues. Applying those statements to their potential audience resulted in more than 43 million violations of New Mexico's consumer protection laws. State District Court Judge Francis Mathew subsequently determined that state law could support penalties exceeding $219 billion, but reduced the judgment to $25 billion.
New Mexico Attorney General Raúl Torrez had sought between $35 billion and $40 billion. Meta argued that any penalty should be capped at approximately $3.45 billion, saying the state failed to prove that consumers had actually been misled or harmed. Meta also maintains that it does not sell users' personal data.
Meta said it will appeal. Chief legal officer C.J. Mahoney argued that the state's approach makes doing business in New Mexico extremely difficult and characterized the lawsuit as an attempt to impose new restrictions on online speech. The company has also argued that a penalty of this size is unconstitutional.
The judgment is the largest fine ever imposed on Meta, surpassing the $5 billion penalty the Federal Trade Commission imposed on Facebook in 2019 following its investigation of the Cambridge Analytica scandal. Because Meta plans to appeal, New Mexico could wait years before receiving any money. Under the state's constitution, money collected from consumer-protection fines would go toward education.
The verdict adds to Meta's substantial legal exposure as the company faces other lawsuits involving privacy, youth safety and the effects of its social media platforms.