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
Healfromzero.com – Meta ordered to pay 25 billion dollars in a New Mexico case tied to the Cambridge Analytica scandal after a state court found the company misled users about the control they had over their personal data. The ruling was issued Wednesday by State District Court Judge Francis Mathew.
The judgment stems from Facebook’s 2018 disclosure that Cambridge Analytica, a political analytics firm, had improperly obtained data from as many as 87 million users. The information was used to create voter profiles in the United States, intensifying scrutiny of Facebook’s privacy practices.
New Mexico Case Focused on User Data
New Mexico sued Facebook in 2021, alleging that it did not adequately protect residents’ personal information and gave users a misleading impression of how their data could be shared or accessed. Facebook later changed its corporate name to Meta.
In September, a jury found that Meta violated New Mexico’s Unfair Practices Act more than 43 million times. Judge Mathew then set the penalty at $25 billion.
“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 court concluded that the conduct went beyond isolated problems. Its decision emphasized the difference between what users were told about controlling their information and how data could be accessed through Facebook’s platform.
Meta Says It Will Appeal
Meta ordered to pay 25 billion is not the final legal outcome, because the company said it plans to appeal. Meta has argued that New Mexico’s attorney general is improperly merging privacy concerns with questions 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,” Meta Chief Legal Officer C.J. 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.”
Any appeal could extend the case substantially before the judgment becomes final. Nevertheless, the size of the award shows the financial risk Meta faces as courts and governments examine its data practices and their effects on users.
Financial and Legal Pressure on Meta
The ruling came as Meta reported quarterly earnings for the period ending in September. Its profit fell below Wall Street expectations, which the company linked to an $18 billion multistate settlement reached in August.
That settlement covered allegations that Meta’s platforms contributed to addiction and harm among young people. It also resolved Cambridge Analytica-related claims involving participating states. New Mexico was not included, allowing its separate case to continue.
Meta reported almost $13 billion in operating income for the quarter and said it would have earned nearly $23 billion without the settlement-related charge. Chief Financial Officer Susan Li said the company continues to monitor legal and regulatory matters that could materially affect its business and financial results.
Why the $25 Billion Judgment Matters
The Meta ordered to pay 25 billion decision is significant both for its size and for the court’s conclusion that privacy-related misrepresentations were central to the company’s business practices. The Cambridge Analytica controversy became a major example of the risks surrounding social media data, political targeting and user privacy.
For New Mexico residents and other social media users, the case is a reminder to review privacy settings, app permissions and the information shared with outside services. Platform disclosures can affect how users understand the control they have over personal data.
FAQ: Meta’s New Mexico Judgment
What did Meta allegedly do in New Mexico? New Mexico alleged that Facebook misled users about the privacy and control of their personal information in connection with the Cambridge Analytica data-sharing scandal.
Does Meta have to pay $25 billion immediately? Meta has said it will appeal, so the judgment is likely to face additional court proceedings before a final outcome is determined.
Was New Mexico part of Meta’s $18 billion multistate settlement? No. New Mexico was not part of that agreement, which is why its Cambridge Analytica-related case proceeded separately.
