A New Mexico judge on October 21 ordered Meta Platforms to pay the state $25 billion after a jury found the social media company had misled consumers about data privacy practices, marking one of the largest financial penalties in U.S. history. The verdict addresses allegations that Meta deceived users regarding how their personal information was handled, including issues related to hate speech moderation and the infamous 2018 Cambridge Analytica data breach.
The lawsuit, filed by New Mexico’s Attorney-General Raul Torrez in 2021, accused Meta of systematically violating state consumer protection laws by providing false assurances about the security and control of user data. The case highlighted that Cambridge Analytica, a now-defunct political consulting firm involved in the 2016 U.S. presidential campaign, accessed personal data from tens of millions of Facebook users without their consent through a third-party app authorized by Facebook. The state contended that Meta tolerated harmful content on its platform when it was financially beneficial and failed to adequately inform users about the risks tied to their data.
Judge Francis Mathew, in his ruling, noted that the total statutory penalties based on over 43 million violations could have exceeded $219 billion under New Mexico law, but he reduced the amount to $25 billion. The law allows fines up to $5,000 per violation, and the jury found that Meta made 26 misleading statements over more than a decade, including comments from CEO Mark Zuckerberg.
New Mexico’s legal team had initially proposed a penalty between $35 billion and $40 billion, aiming to impose a significant financial message about user privacy for large technology companies. Attorney Randi McGinn argued at a hearing that the penalty needed to "speak to Meta in the only language it understands, which is money and the value of its stock price."
Meta responded by characterizing the penalty as disproportionate and constitutionally problematic, with company lawyer Matt Nicholson describing it as "blatantly unconstitutional" and far exceeding previous large corporate fines such as the $20.8 billion BP Deepwater Horizon oil spill settlement. The company argued that there was no evidence that any individual New Mexican had been harmed and suggested a penalty closer to $345 million to $3.5 billion as more appropriate. Meta’s chief legal officer, C.J. Mahoney, indicated the company plans to appeal, asserting that the ruling endangers free speech and the ability to conduct business in New Mexico.
The New Mexico Attorney-General emphasized the justice system’s role in holding large technology firms accountable, stating the verdict signals a clear warning to companies that consumer protections must be upheld. The funds awarded by the penalty are directed to support the state’s school system under New Mexico law.
Legal analysts expect a prolonged appeals process, noting that while the size of the penalty is unprecedented, it is rooted in specific state statutes. Observers also noted that despite the fine’s size, Meta’s overall market valuation of nearly $2 trillion may mitigate immediate financial impact. The case follows previous settlements involving Meta and other states related to Cambridge Analytica and issues over teen mental health impacts linked to social media platforms.