From Straight Arrow · · 3m
Meta Ordered to Pay $25 Billion in New Mexico Data Privacy Case
Meta faces $25 billion penalty after New Mexico jury finds data deception.
In brief
Meta faces $25 billion penalty after New Mexico jury finds data deception. New Mexico ordered Meta to pay $25 billion for misleading users about data privacy in Cambridge Analytica case. Originally reported by Straight Arrow.
New Mexico Court Orders Meta
A New Mexico judge ordered tech giant Meta to pay $25 billion in damages for deceiving its users about data privacy practices.
Cambridge Analytica Scandal
The state sued Meta over the Cambridge Analytica scandal, in which Cambridge Analytica collected Facebook user data for political advertising.
Jury Ruling Against Meta
Last month, a jury ruled against Meta, saying it violated New Mexico’s consumer protection laws 43 million times.
Penalty Calculation
Each violation carried a penalty of up to $5,000, with the judge reducing the maximum penalty from $219.5 billion to $25 billion.
Previous Legal Wins
This is New Mexico’s second legal win against Meta this year, following an August award of $567 million for young users.
Earlier Settlement
Meta also faced a landmark settlement in March with 47 states and the District of Columbia after agreeing to pay up to $17.1 billion in penalties.
Meta's Appeal Plan
Meta has said it plans to appeal the verdict, arguing the penalty is 'shocking to the conscience' and could be reduced.
Attorney General's Statement
New Mexico Attorney General Raúl Torrez framed the ruling as a victory for consumers and a warning to the tech industry.
Financial Impact
The penalty will carry 15% annual interest until paid, with Meta's stock rising 2% following the announcement.
Historic Context
The Cambridge Analytica scandal became public in 2018, revealing data from 87 million Facebook profiles was harvested without consent.
Data Exposure
87 million profiles were exposed through a third-party personality quiz and sold to Cambridge Analytica without user consent.
Jury Findings
The jury found 26 of 29 public statements Meta and its leadership made about data privacy were misleading.
State's Legal Strategy
New Mexico was the only state to pursue a trial after 48 other states accepted an $18 billion settlement.
Future Actions
The state is seeking an injunction to stop Meta from continuing the practices that led to the jury's finding of liability.
Meta's Defense
Meta disputed the ruling and said it planned to appeal, arguing the penalty is 'shocking to the conscience'.
Consequence
The $25 billion penalty will fund school construction for the next 100 years, according to New Mexico Attorney General Raúl Torrez.
In short
New Mexico ordered Meta to pay $25 billion for misleading users about data privacy in Cambridge Analytica case.
