Meta ordered to pay $25 billion in New Mexico case over Cambridge Analytica scandal

Meta Ordered to Pay $25 Billion in New Mexico Privacy Case

Earthguardiansonline.com – Meta ordered to pay 25 billion dollars in New Mexico after a state judge found the company misled Facebook users about the handling of personal information connected to the Cambridge Analytica scandal. Meta has said it plans to appeal the decision.

The ruling was issued Wednesday by State District Court Judge Francis Mathew. If upheld, the judgment would rank among the largest financial penalties imposed on a major technology company.

Case Tied to Cambridge Analytica Data Harvesting

The case grew out of the 2018 revelation that data associated with up to 87 million Facebook users had been improperly obtained by Cambridge Analytica, a political analytics firm that used the information to build profiles of US voters.

Facebook, now known as Meta, faced extensive scrutiny over third-party access to user data, privacy controls and the information it provided to people about their choices. New Mexico sued in 2021, alleging that the company mishandled residents’ data and misrepresented its privacy practices.

In September, a jury found Meta had violated New Mexico’s Unfair Practices Act more than 43 million times. Judge Mathew later determined the financial penalty based on those findings.

“Facebook’s misrepresentations about users’ control of their data were not isolated incidents, but rather a systematic pattern of deception at the core of Facebook’s business model,” Mathew wrote.

The judge also described the conduct as a “coherent strategy designed to mislead the public.”

Meta Plans to Challenge the Judgment

Meta said it disagrees with the ruling and will seek to overturn it. Chief Legal Officer C.J. Mahoney argued that New Mexico’s case improperly combines privacy concerns with issues involving online speech.

“This ruling, and the Attorney General’s approach to this enforcement, makes it all but impossible to do business in the state of New Mexico,” Mahoney said. “At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online. We are confident we will prevail on appeal.”

Because Meta plans to appeal, the final amount the company will ultimately pay remains unresolved. The case nevertheless highlights the potential consequences when courts determine that a platform’s descriptions of privacy tools do not match its conduct.

For Facebook users in New Mexico and elsewhere, the dispute underscores the importance of understanding what data a platform collects, how it may be shared and what control users have over third-party access.

Financial Pressure From Other Legal Matters

The decision comes during a period of continuing legal pressure for Meta. The company reported quarterly results Wednesday for the period ending in September, with profit below Wall Street expectations after a charge tied to an $18 billion multistate settlement reached in August.

That settlement resolved claims alleging that Meta’s platforms contributed to addiction and harm among young people. It also addressed outstanding Cambridge Analytica-related claims for participating states, although New Mexico was not included.

Meta reported nearly $13 billion in income from operations during the quarter. The company said operating income would have been close to $23 billion without the settlement-related charge.

Chief Financial Officer Susan Li said Meta continues to monitor legal and regulatory matters that could materially affect its business and financial performance, including further youth-related trials expected later this year and next year.

New Mexico Meta Judgment FAQ

What does the $25 billion ruling mean?

The ruling means a New Mexico state court ordered Meta to pay a $25 billion penalty based on findings that the company violated the state’s Unfair Practices Act. The order is not necessarily final because Meta intends to appeal.

Is New Mexico receiving the payment now?

Not necessarily. An appeal can delay enforcement and may result in the judgment being upheld, reduced or changed. The final outcome will depend on the appellate process.

Why was Meta sued by New Mexico?

New Mexico alleged that Meta misled users about privacy and data-sharing practices connected to the Cambridge Analytica scandal, including how personal information could be accessed by third parties.

Does the ruling affect Facebook users outside New Mexico?

The case directly concerns New Mexico’s claims and laws, but it reflects broader concerns about privacy disclosures, user controls and third-party access to social-media data.