The Pulse
New Mexico Judge Orders Meta to Pay $25 Billion for Privacy Violations
A New Mexico judge reduced a potential $219.5 billion penalty against Meta to $25 billion for violations tied to Facebook’s privacy and other consumer-facing statements. The ruling follows a jury’s finding of 43,899,720 violations and leave
AI.info Team · Written with AI · fact-checked ·
A New Mexico judge has ordered Meta to pay $25 billion in civil penalties, imposing one of the largest financial judgments against a U.S. company. The October 21 order follows a jury’s finding that Facebook committed roughly 43.9 million violations of the state’s Unfair Practices Act. The case centers on the company’s statements about user data and its handling of the Cambridge Analytica scandal.
How the judge arrived at $25 billion
The court calculated a potential penalty of $219.4986 billion by applying the law’s $5,000 maximum to 43,899,720 violations listed in the judgment. Judge Francis J. Mathew reduced that amount to $25 billion, or about $569 per violation. The order says interest will accrue at 15% a year until the penalty is paid.
The judge reserved a decision on injunctive relief, which could impose additional requirements on Meta, pending further briefing. The order establishes the penalty; it does not mean the state has collected the money. Meta says it expects to challenge the ruling on appeal.
What the jury found Facebook misrepresented
The jury’s September verdict covered statements about how Facebook collected, shared and used personal information, along with promises about its response to third-party apps that misused data. New Mexico’s account of the verdict says jurors also found misleading statements about the platform’s treatment of misinformation and hate speech, including assurances that its content rules applied consistently. The judge’s later order addresses the penalty for the violations.
The case grew out of the Cambridge Analytica scandal, in which a personality quiz gathered data from Facebook users and their connections. Cambridge Analytica used Facebook information to build political profiles and target voters during the 2016 election season. New Mexico’s lawsuit argued that the state’s claims extended beyond that episode to Facebook’s broader representations about privacy and platform practices.
Meta says it will appeal
Meta disputes the result and argues the state’s enforcement approach threatens its ability to operate in New Mexico. C.J. Mahoney, the company’s chief legal officer, said in a statement:
“We are confident we will prevail on appeal.”
— C.J. Mahoney, Meta’s chief legal officer
Meta’s lawyers had argued that the state failed to prove its claims and said a much larger award would be unconstitutional.
Attorney General Raúl Torrez said the judgment should carry a warning for other technology companies:
“This is a historic day for New Mexico and for consumers across the country,”
— Raúl Torrez, New Mexico attorney general
New Mexico pursued its case separately rather than joining a multistate settlement, according to the state and AP.
A judgment, not a payment
New Mexico had asked the judge for penalties of $35 billion to $40 billion, while Meta sought a much smaller award. The judgment exceeds the Federal Trade Commission’s $5 billion penalty against Facebook in 2019, though the amount New Mexico ultimately receives depends on the appeal process. Under the state constitution, consumer-protection fines go toward education spending.
The case is separate from another New Mexico lawsuit over child safety on Facebook and Instagram, as well as the multistate case over alleged harm to young users. The privacy judgment turns on the jury’s findings about consumer-facing statements and data practices; it does not itself resolve the judge’s still-pending question of injunctive relief.