Meta ordered to pay $25 billion to New Mexico after jury finds company misled consumers about data privacy
META•A New Mexico judge ordered Meta to pay $25 billion after a jury found that 26 of 29 company statements about data privacy and other policies were misleading, citing more than 43 million violations. The judge said state law warranted a penalty above $219 billion but reduced it to $25 billion.
1. Penalty reduced to $25 billion
A New Mexico judge ordered Meta Platforms to pay $25 billion after a jury found the company misled consumers about data privacy and other policies. Judge Francis Mathew said a penalty above $219 billion was warranted under state law but reduced the amount to $25 billion.
2. Jury found millions of violations
Jurors found 26 of 29 statements made by Meta and its leadership misleading and cited more than 43 million violations of New Mexico consumer protection laws. State law allows penalties of up to $5,000 per violation and directs the money to the state's school system. Meta had urged the judge to cap penalties at $3.45 billion.
3. Meta expected to appeal
The case followed allegations that Cambridge Analytica obtained personal data from millions of Facebook users without consent. Analyst Gil Luria said Meta would likely continue to appeal and that the current set of cases was unlikely to materially affect its value. In a separate New Mexico trial, a jury ordered Meta to pay $375 million in civil penalties, and a judge later directed it to pay $567 million into a teen mental health fund.
