Meta Platforms has been ordered to pay $25 billion after a New Mexico jury found the company misled Facebook users regarding its handling of personal data and other practices in a case stemming from the Cambridge Analytica scandal [1]. New Mexico Judge Francis Mathew issued the penalty on Wednesday after jurors determined last month that Meta made dozens of misleading statements to users, with the judge noting that "Facebook's wrongdoing — over the course of years and systematically broadcast to the public — goes to the heart of Facebook's core business practices" [1]. The case originated from New Mexico's 2021 lawsuit accusing Meta of misleading users about who could access their personal information and how the platform handled harmful content [1]. The Cambridge Analytica incident involved the now-defunct firm obtaining information from as many as 87 million Facebook users through a third-party app without their consent, with the firm having worked for President Donald Trump's 2016 campaign [1].
Jurors found that 26 of 29 statements examined during the trial were misleading and determined that Meta committed more than 43 million violations of New Mexico's consumer protection laws [1]. Judge Mathew stated that the violations could have resulted in a penalty exceeding $219 billion under state law but ultimately reduced the amount to $25 billion, after Meta had urged the judge to limit the penalty to $3.45 billion [1]. New Mexico Attorney General Raúl Torrez characterized the ruling as "one of the largest ever against Meta by a single state" and stated: "It has been a long time coming holding Big Tech accountable. I think today's judgment is a clear break with that past and a very clear warning to those in this space and beyond that we intend to protect our people and protect our consumers" [1].
Meta announced plans to appeal the ruling, with Chief Legal Officer C.J. Mahoney stating that "This ruling, and the Attorney General's approach to this enforcement, makes it all but impossible to do business in the state of New Mexico" and asserting confidence that "we will prevail on appeal" [1]. Despite the significant penalty, Meta's stock showed resilience, trading at $697.52 with a gain of +0.47% [1]. Business litigation expert Monte Mann noted that "The $25 billion figure is staggering, even for a company like Meta," highlighting the substantial exposure major technology companies face under state consumer protection laws [1].
CONCLUSION
Meta faces a landmark $25 billion penalty from New Mexico for misleading users about data privacy practices related to the Cambridge Analytica scandal, representing one of the largest state-level judgments against the tech giant [1]. While the company plans to appeal and stock markets showed modest gains, the ruling underscores significant regulatory and legal risks for major technology platforms under state consumer protection laws [1].