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

NEW MEXICO — Meta Platforms has been ordered by a New Mexico state judge to pay $25 billion to the state, marking one of the largest financial penalties in U.S. history. The ruling follows a jury's determination that the technology giant misled consumers regarding data privacy.

The case originated from allegations involving Cambridge Analytica, a defunct British political consulting firm that obtained data from millions of Facebook users without consent during the 2016 U.S. presidential election cycle. New Mexico's attorney general sued Meta in 2021, accusing the company of misrepresenting who had access to user data and how it handled hate speech and misinformation.

Judge Francis Mathew wrote in his order that the company's actions went to the core of its business practices. While state law could have supported a penalty exceeding $219 billion, Judge Mathew reduced the final amount to $25 billion. Jurors had previously concluded that Meta and its leadership made 26 misleading statements regarding data privacy and other subjects, resulting in over 43 million violations of New Mexico consumer protection laws when multiplied by the potential audience.

New Mexico Attorney General Raúl Torrez described the penalty as a clear warning to corporations operating in the technology sector. During court proceedings, lawyers for the state argued for penalties between $35 billion and $40 billion.

Meta's chief legal officer, C.J. Mahoney, released a statement expressing confidence that the company will prevail on appeal. Mahoney contended that the ruling and the enforcement approach make operating a business in New Mexico nearly impossible and effectively impose a tax on speech.

In its court filings, Meta maintained that it does not sell user data and that the state failed to prove any consumers were actually misled, suggesting a penalty cap of $3.45 billion. Financial analysts have noted that while the penalty is substantial, Meta's nearly two-trillion-dollar valuation means the company is likely to continue dragging out the litigation through appeals.

This ruling adds to existing regulatory and legal pressures on Meta, which previously faced a $5 billion penalty from the U.S. Federal Trade Commission in 2019 over the Cambridge Analytica scandal. The company also reached a $17.1 billion multistate settlement in August, which included $459.2 million to resolve lawsuits from six other states related to Cambridge Analytica, alongside ongoing litigation concerning platform safety and teen mental health.

"This record-setting penalty highlights the severe regulatory and legal risks large technology companies face regarding consumer data and privacy compliance. For businesses and startups alike, this case underscores the critical importance of transparent data practices and proactive governance from the earliest stages of growth. As state and federal regulators increasingly scrutinize digital platforms, compliance can no longer be treated as an afterthought without risking severe financial consequences." — Dr. Shishir Gupta, Founder & CEO, StartupLanes