Meta Ordered to Pay New Mexico $25 Billion in Cambridge Analytica Case
A New Mexico judge has ordered Meta to pay the state a staggering $25 billion over misleading statements Facebook made about user privacy, in a case tied to the Cambridge Analytica data scandal. Meta says it will appeal.
Some outlets have called it the largest privacy verdict in U.S. history. Judge Francis Mathew handed down the ruling Wednesday, Engadget reported.
"It has been a long time coming holding Big Tech accountable," New Mexico Attorney General Raúl Torrez said.
What the Case Was About
The case dates back to the Cambridge Analytica scandal. More than a decade ago, data was collected through a personality quiz on Facebook and handed over to Cambridge Analytica, a political consulting firm. Nationwide, as many as 87 million people had their data swept up. The state says about 350,000 New Mexicans were affected, KOB 4 reported.
New Mexico filed its lawsuit in 2021. Rather than focusing on the harvested data itself, the case targeted what Facebook told users about their data, privacy settings and content moderation.
In September, a Santa Fe jury found that Meta violated New Mexico's Unfair Practices Act, the state's consumer protection law. Jurors counted more than 43 million violations after weighing the evidence for a little more than two weeks.
How the Judge Landed on $25 Billion
Under state law, each violation can carry a penalty of up to $5,000. That meant Meta faced a maximum penalty of more than $219 billion.
"So in theory, this company is facing a civil penalty in excess of $219 billion," Torrez said.
The state asked for $35 billion to $40 billion, while Meta argued the penalty should be no more than $3.45 billion. The judge settled on $25 billion.
In his ruling, Mathew called Facebook's promised investigation after the scandal "willfully ineffective." He also pointed to "the clear intentional and systematic nature of Facebook's repeated misstatements."
To put the amount in perspective, New Mexico's general fund budget is roughly $11 billion. The penalty is also five times larger than the $5 billion fine the Federal Trade Commission handed Facebook in 2019, Tech Times reported.
Where the Money Would Go
The money is set to go to New Mexico's school system. Interest will build at 15% per year from the date of the ruling until the penalty is paid in full.
That could add up quickly, since Meta plans to fight the ruling. Chief Legal Officer C.J. Mahoney called the penalty "a tax on speech" and a "misuse of the law," and said Meta expects to win on appeal.
The case would go first to the New Mexico Court of Appeals and could eventually reach the U.S. Supreme Court. The penalty is expected to be on hold while the appeals play out, which could take several years.
Not Meta's First Loss in New Mexico
This is not the first time New Mexico has won a major case against the tech giant. In March, a jury ordered Meta to pay $375 million after finding the company made false or misleading statements and engaged in practices that exploited children's vulnerabilities, Al Jazeera reported. Meta said it would appeal that verdict as well.
New Mexico also did not join a separate settlement Meta reached with nearly every other state, which allowed this privacy trial to move forward. Meta has faced other costly legal battles this year, too. In August, it agreed to pay $17 billion to settle claims from 47 states over teen social media addiction.
The ruling also lands as Meta founder Mark Zuckerberg faces fresh scrutiny in Hollywood, with Aaron Sorkin's "The Social Reckoning" taking a harsh look at the tech billionaire.
Curious for more stories that keep you informed and entertained? From the latest headlines to everyday insights, YourLifeBuzz has more to explore. Dive into what’s next.