Meta Ordered to Pay $25 Billion in New Mexico Data Privacy Case

Meta Platforms was ordered to pay $25 billion by a New Mexico court on Wednesday in a data privacy case stemming from the Cambridge Analytica scandal, according to reporting from The Guardian. The massive penalty follows a September jury verdict finding the social media giant liable for misleading state citizens about how it collects and safeguards user data. While state law allowed for a potential penalty exceeding $219 billion, District Court Judge Francis Mathew reduced the final fine to $25 billion, noting that the company’s misleading statements went to the heart of its core business practices.

The $219 Billion Calculation and the $25 Billion Ruling

The legal action originated from a 2021 lawsuit filed by the New Mexico attorney general after revelations that Cambridge Analytica harvested personal data from up to 87 million Facebook users via a third-party app. CNBC reported that jurors concluded Meta committed more than 43 million violations of the state’s Unfair Practices Act. Each infraction carried a civil penalty as high as $5,000. During courtroom proceedings, New Mexico attorney Randi McGinn urged the judiciary to assess a fine ranging from $35 billion to $40 billion, contending that the court must address Meta using the sole language it comprehends—financial figures and stock valuation—as noted by The Guardian. Judge Mathew ultimately settled the figure at $25 billion, adding that interest on the penalty shall accrue at a rate of 15% each year until paid in full.

Executive Communications and Internal Scrutiny

Judge Mathew’s order highlighted that communications between senior executives, including Mark Zuckerberg, were designed to mislead the public, according to BBC coverage. The state accused Meta of lying to users regarding who had access to their data and how the platform handled hate speech and misinformation. Jurors previously found that 26 of 29 statements made by company leadership on those issues were misleading.

Corporate Defense and Prior Litigation History

In court filings, Meta urged the judge to cap penalties at $3.45 billion, arguing that a higher fine risked driving businesses out of the state and asserting that New Mexico failed to prove any consumer was actually misled. The company also maintained that it does not sell user data. This verdict marks the second major legal defeat for Meta in a Santa Fe courtroom within six months. In March, a jury ordered the company to pay $375 million in civil penalties for misleading users about young users’ safety, followed by a judge’s order to pay $567 million into a teen mental health fund, a ruling Meta planned to appeal.

School System Allocation and Unresolved Legal Exposure

State Attorney General Raúl Torrez told reporters after the verdict that all of the penalty money is directed to New Mexico’s school system. Although Meta previously settled multiple nationwide privacy lawsuits tied to Cambridge Analytica—such as a 2022 class action costing $725 million alongside an August agreement worth nearly $17 billion with a group of state attorneys general in a separate federal proceeding—New Mexico stayed out of those pacts, enabling its unique grievances to advance to a full trial. A spokesperson for Meta did not immediately respond to requests for comment following Wednesday’s order.