A judge in New Mexico has ordered Meta Platforms to pay $25 billion in civil penalties following a significant legal defeat concerning the company's consumer data protection practices. The ruling, delivered by Judge Francis Mathew on Wednesday, concludes a high-stakes case centered on allegations that Meta misled millions of Facebook users regarding how their personal information was accessed and how the platform addressed issues such as hate speech and misinformation.
The legal action, initiated by the New Mexico attorney general in 2021, traces its origins to the 2016 Cambridge Analytica scandal. During that period, the British political consulting firm harvested personal data from up to 87 million Facebook users via a third-party application. While the state sought a penalty between $35 billion and $40 billion, and the judge noted that a penalty exceeding $219 billion could be justified under state law, the final order was set at $25 billion.
Judge Mathew’s decision followed a jury verdict on September 25, which determined that Meta and its leadership had made misleading statements in 26 out of 29 instances examined during the trial. The jury concluded that the company committed more than 43 million individual violations of New Mexico’s consumer protection laws. This calculation was based on the number of state residents or Facebook users exposed to each specific misleading statement. Under state statutes, each violation carries a potential penalty of up to $5,000.
In his order, Judge Mathew underscored the gravity of the company's actions. He wrote that the wrongdoing, which was systematically broadcast to the public over several years, reached the core of the company's business practices. New Mexico Attorney General Raúl Torrez stated that the substantial sum recovered from this judgment is earmarked for the state’s public school system.
During the proceedings, Meta had requested that the court cap penalties at $3.45 billion. The company’s legal team argued that a significantly higher financial burden could discourage businesses from operating within the state. Furthermore, Meta maintained in court filings that it had not sold users' personal data and that the prosecution failed to provide evidence that specific consumers were harmed or misled by the company's policies.
This case represents the second major legal setback for Meta in New Mexico within the last six months. In March, a Santa Fe jury found the company liable for misleading users about the safety of children on its platforms, including Facebook, Instagram, and WhatsApp. That earlier trial resulted in an initial $375 million penalty, followed by an additional $567 million court-ordered contribution to a state fund dedicated to teen mental health.
The latest ruling adds to a growing list of regulatory challenges faced by Meta as authorities globally increase their scrutiny of how major technology platforms manage user information and address harmful content. As the legal battle concludes in the state court, the judgment reflects a intensifying effort by regulators to hold social media giants accountable for their internal policies and public representations. Meta faces ongoing pressures to balance its operational model with shifting legal requirements in multiple jurisdictions.
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