A New Mexico judge on Wednesday ordered Meta to pay the state $25 billion for deceiving Facebook users about how it protected their privacy. Judge Francis Mathew set the penalty after a jury found in September that Meta was liable for more than 43 million violations of New Mexico's consumer protection laws in a case rooted in the Cambridge Analytica data scandal, the Associated Press reported.
"These communications were part of a coherent strategy designed to mislead the public," Mathew wrote, according to CBS News. Meta has said it will appeal.
Why was Meta fined $25 billion?
New Mexico sued Facebook in 2021, accusing it of misleading users about privacy and content moderation. The case centered on how Facebook handled the Cambridge Analytica breach, in which a third-party personality quiz harvested data from roughly 87 million profiles that was then sold to the political consulting firm to build targeted ads. The now-defunct firm's clients included Donald Trump's 2016 campaign.
Jurors weighed whether Facebook misled users in 34 separate instances and found more than 43 million violations in total. They also found the state did not prove that Facebook made false claims about removing harmful content, including COVID-19 misinformation.
| Amount | |
|---|---|
| New Mexico's request | $35 billion–$40 billion |
| Meta's proposed maximum | $3.4 billion |
| Judge's penalty | $25 billion |
| Violations found by jury | 43 million+ |
What did New Mexico's attorney general say?
Attorney General Raúl Torrez called it "one of the largest, if not the single largest state verdict against a company in American history," CBS News reported, and said it should send "an unambiguous message, to Silicon Valley."
Under the New Mexico Constitution, consumer protection fines go toward education. Torrez said the money could pay for schools "for the next 100 years," while acknowledging it will be tied up during Meta's appeal. The state is also seeking an injunction to stop similar practices.
What does Meta say?
Meta's lawyers argued the state never showed that any New Mexican heard or saw the statements or was harmed by them. "The jury didn't make findings that any New Mexican heard or saw these statements, or was harmed by them," Meta attorney Matt Nicholson said at an Oct. 1 hearing, calling a $40 billion penalty "shocking to the conscience."
Meta also argued that counting violations based on everyone who may have seen the statements is unprecedented, and that the law shouldn't cover New Mexicans who weren't Facebook users at the time. The company says it has changed its policies since the lawsuit was filed. Meta did not immediately comment on Wednesday's penalty, CBS reported.
Why didn't New Mexico settle with the other states?
In August, 48 states settled Cambridge Analytica-related claims with Meta for $18 billion, a deal that released the company from future liability over the breach, according to AP. New Mexico and Florida were the only states that did not sign on, and New Mexico was the only one to take its case to trial.
What happens next?
Meta's appeal could take years, and the 43 million violation count, the basis of the penalty, could be reduced. Interest will accrue in the meantime. Investors appeared unfazed for now: Meta shares rose about 2% after the ruling, on the same day the company was set to report quarterly earnings.
This story is based on reporting by the Associated Press, CBS News, The Washington Post and Variety. It will be updated if Meta responds.
