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A New Mexico judge ordered Meta to pay $25 billion in penalties after a jury found the company liable for more than 43 million violations of the state’s unfair practices law. Meta said it is confident it will prevail on appeal; the order also sets 15% annual interest until payment.
A New Mexico judge ordered Meta to pay $25 billion in penalties on Wednesday in a state data privacy case linked to the Cambridge Analytica scandal, after a jury found the company liable for more than 43 million violations of New Mexico’s unfair practices law. Meta’s chief legal officer said the company plans to appeal, leaving the final amount and timing of any payment subject to further proceedings.
The order followed a September jury verdict in Santa Fe. Jurors found Meta liable for misleading New Mexico residents about how it collected and protected user data and how it addressed harmful information on its services. The jury counted more than 43 million violations, each of which could carry a civil penalty of up to $5,000 under state law. A judge, rather than the jury, set the ultimate penalty.
A court filing said the state had been awarded $219.5 billion before the penalty was reduced to $25 billion. District Court Judge Francis Mathew wrote that the jury’s findings supported imposing the law’s maximum penalty per violation. He cited the alleged conduct’s duration and repetition, the range of subjects involved, the size of the New Mexico audience, and the role of senior Facebook leadership, as well as what he characterized as intentional and systematic misstatements established in the trial record.
The order also provides for 15% annual interest until the penalty is paid in full. Meta disputed the decision. Chief Legal Officer C.J. Mahoney said the company was “confident” it would “prevail on appeal,” and argued that the lawsuit’s approach would make it difficult to operate in New Mexico. The company’s position is a response to the ruling, not a court finding.
A Record State Penalty at Stake
The order puts a $25 billion financial judgment against Meta at the center of a state enforcement case, while the planned appeal means the amount may not be final. The 15% interest provision could add to the financial exposure if the order stands and remains unpaid, though the filing does not specify how the appeal will affect payment or interest.
The decision also shows how a state can pursue its own case even after a company resolves related claims elsewhere. New Mexico was not part of the separate multistate settlement described in the report, so its case continued to trial. The ruling may draw attention from other state officials considering enforcement over data privacy and online safety, but the available information does not establish what effect it will have on other cases or laws.
The verdict concerns the jury’s findings under New Mexico’s unfair practices law and the judge’s calculation of a penalty. It does not by itself resolve every question about Meta’s broader data practices, nor does it establish how a court of appeal will treat the state’s interpretation or the amount awarded.
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How the Cambridge Analytica Case Reached Trial
The case traces back to the Cambridge Analytica scandal, which became public in 2018. The controversy centered on allegations that the political consulting firm improperly accessed information associated with 87 million Facebook users, prompting scrutiny of Facebook’s data handling and its response to the revelations. In the New Mexico proceeding, Judge Mathew wrote that Facebook “did not conduct the comprehensive investigation that it promised” after the scandal.
Former New Mexico Attorney General Hector Balderas filed the state’s case in 2021. Current Attorney General Raúl Torrez oversaw the trial. Meta has also resolved other lawsuits stemming from Cambridge Analytica: in 2022, it agreed to pay $725 million to settle a class-action case. The source also describes a separate federal settlement of nearly $17 billion involving a coalition of state attorneys general and claims related to child safety and mental health. New Mexico was not included in that settlement, and its privacy case proceeded separately.
The New Mexico case is distinct from a later state child-safety case against Meta. A jury in that matter ruled in March that the company should pay $375 million for violating the state’s unfair practices law; a judge later ordered a $567 million payment into an abatement fund in a separate phase. Meta said it disagreed with that ruling and planned to appeal.
“For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law.”
— New Mexico Attorney General Raúl Torrez, in a statement
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Appeal Could Change the Outcome
Meta has said it intends to appeal, but the report does not identify when it will file, which issues it will challenge, or when an appellate court might rule. It is also unclear whether the company must pay any portion of the $25 billion penalty while the appeal proceeds, or whether the interest provision will be paused, altered, or applied during that period.
The order’s calculation and the state’s award may face further legal scrutiny. The filing reports an initial award of $219.5 billion and a reduction to $25 billion, but the supplied account does not explain the full calculation behind that reduction. The court’s Wednesday order is confirmed; the ultimate amount Meta will owe remains subject to the appeal process.
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Meta’s Appeal Is the Next Step
The next expected development is Meta’s formal appeal of the New Mexico ruling. The company has publicly said it expects to prevail, but no filing date or schedule for appellate arguments is provided in the report. The state’s response and any court orders addressing payment or interest could clarify whether the penalty takes effect while the challenge is pending.
Until those steps occur, the court order sets the current penalty at $25 billion, plus interest at 15% annually, while the final financial outcome remains unsettled. Any later ruling could uphold, reduce, or otherwise alter the penalty; the available information does not establish which outcome is likely.
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Key Questions
Why was Meta ordered to pay $25 billion?
A New Mexico jury found Meta liable for more than 43 million violations of the state’s unfair practices law in a case about the company’s data practices and statements to residents. Judge Francis Mathew set the penalty at $25 billion after the jury’s findings.
Has Meta agreed to pay the penalty?
No. Meta’s chief legal officer said the company is confident it will prevail on appeal. The report does not say that Meta has paid or accepted the order as final.
Will the penalty keep increasing?
The order says 15% annual interest will accrue until the penalty is paid in full. How the interest provision will apply during Meta’s appeal is not specified in the report.
Is this the same as Meta’s other Cambridge Analytica settlements?
No. New Mexico’s case proceeded separately because the state was not part of the multistate settlement described in the report. Meta also agreed in 2022 to pay $725 million to resolve a separate class-action lawsuit linked to the scandal.
Source: hn
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