Meta has strong chance of getting $25 billion New Mexico penalty slashed on appeal, experts say
META•Legal experts said Meta has a strong basis to seek a reduction of the $25 billion penalty New Mexico won this week. Jurors found more than 43 million violations of state consumer law, while Meta says it is confident it will win on appeal.
1. Appeal may challenge violation count
Experts said Meta is likely to argue that penalties should count only when people actually saw allegedly misleading statements, rather than being based on their potential audience. A jury found that 26 of 29 statements by Meta and its leaders were misleading, then counted more than 43 million potential violations.
2. Penalty and legal arguments
The judge said state law could justify a penalty exceeding $219 billion but reduced it to $25 billion. New Mexico had sought $35 billion to $40 billion, while Meta argued that no more than $3.45 billion was warranted. The company has said the penalty could violate its constitutional rights to due process and protection from excessive fines.
3. State plans to defend judgment
Meta is expected to appeal both the jury verdict and the penalty. New Mexico Attorney General Raúl Torrez said the state was ready to defend its legal position. One legal expert said the size of the penalty alone does not mean it will be overturned, while another questioned whether the calculations involved duplicative counting.
