Photo: IMEN BEN YOUSSEF / AFP / Getty Images
Meta has been ordered to pay New Mexico $25 billion in penalties after a jury found the company liable for misleading users about data collection and content moderation on Facebook. The ruling, delivered by New Mexico district court judge Francis Mathew, follows a jury's decision in September that Meta committed over 43 million violations of the state's unfair practices act. Each violation carried a potential penalty of up to $5,000, according to CNBC.
The case stems from the Cambridge Analytica scandal, where the political consulting firm accessed data from millions of Facebook profiles to create targeted political ads. New Mexico was not part of a previous nationwide settlement involving 48 other states, which led to this separate trial. NewsNation reports that New Mexico's Attorney General Raúl Torrez described the verdict as potentially the largest state verdict against a company in U.S. history.
The penalty includes a stipulation of 15% annual interest until paid in full. Meta plans to appeal the decision, arguing that the penalty is excessive and that the state failed to prove the alleged harms. The company has previously settled other Cambridge Analytica-related lawsuits but contends that New Mexico's claims are unfounded.
Judge Mathew emphasized the "intentional and systematic nature" of Meta's actions, noting that senior Facebook leadership was involved in the violations. The judge also criticized Facebook for not conducting a comprehensive investigation following the Cambridge Analytica revelations, citing inadequate enforcement resources and a desire to avoid setting precedents for future investigations, as reported by Reuters.
The funds from the penalty are intended to support New Mexico's education system, though the appeal process may delay their availability. The state is also seeking an injunction to prevent similar practices in the future.