New Mexico Judge Orders Meta to Pay $25 Billion
Meta Platforms must pay $25 billion to New Mexico's school system after a jury found the company misled consumers about data privacy.
A New Mexico judge ordered Meta Platforms to pay $25 billion on Wednesday after a jury determined the company misled consumers regarding data privacy. The ruling concludes a case filed in 2021 stemming from the Cambridge Analytica scandal, in which a political consulting firm harvested data from approximately 87 million Facebook users.
Jurors found that Meta committed over 43 million violations of state consumer protection laws, ruling that 26 of 29 statements made by the company and its leadership were misleading. Judge Francis J. Mathew initially calculated damages at $219.5 billion before reducing the final penalty to $25 billion, with interest accruing at 15% annually. The funds are designated for the New Mexico school system.
Meta argued that the state failed to prove actual consumer harm and urged a penalty cap of $3.45 billion, claiming the $25 billion fine is unconstitutional. This judgment follows a separate legal defeat for the company in March, when it was ordered to pay $942 million over teen safety and mental health issues in New Mexico.
