Meta has been ordered to pay $25 billion in civil penalties to New Mexico after a state court found the company liable for misleading Facebook users about its data privacy practices. The October 21, 2026, ruling follows a jury verdict that identified nearly 44 million violations of the state’s consumer protection laws, including conduct related to the Cambridge Analytica data scandal.
The New Mexico Department of Justice confirmed the penalty, which ranks among the largest financial judgments against a corporation in US history. Meta said it plans to appeal the decision, challenging both the findings and the financial penalty.
Jury Finds Nearly 44 Million Consumer Protection Violations
A New Mexico jury found that Facebook committed 43,899,725 violations of the state’s Unfair Practices Act by making false or misleading statements about user privacy, data sharing, and content moderation. The findings followed a trial examining how the company represented its data protection policies and efforts to address misinformation and hate speech.
Under New Mexico law, each willful violation can carry a civil penalty of up to $5,000, potentially bringing the total to approximately $219.5 billion. However, District Judge Francis Mathew reduced the penalty to $25 billion after considering the circumstances of the case.
The lawsuit originated from the Cambridge Analytica scandal, in which personal information belonging to as many as 87 million Facebook users was improperly obtained through a third-party application. Cambridge Analytica, a British political consulting firm connected to SCL Group, used Facebook data for political advertising activities, including work related to the 2016 US presidential election.
New Mexico Attorney General Responds to Ruling
New Mexico Attorney General Raúl Torrez described the judgment as a major outcome for the state’s consumer protection enforcement efforts. During a press conference, he suggested that the financial penalty could fund public services, including education, for many years.
The state pursued the case independently rather than resolving its claims through a broader settlement involving other states. Its lawsuit examined Facebook’s statements about third-party access to personal information and the effectiveness of its privacy protections.
According to Reuters, legal experts believe Meta could challenge the penalty based on how individual violations were counted. The company may also dispute whether the amount is constitutionally excessive.
Meta Plans to Appeal $25 Billion Judgment
Meta chief legal officer C.J. Mahoney criticized the judgment, arguing that New Mexico’s enforcement approach would make it difficult for technology companies to operate in the state. He also claimed the lawsuit sought to impose restrictions on online speech through consumer protection legislation.
Mahoney said Meta remains confident that it will prevail on appeal and will continue operating its platforms while challenging the ruling. The company disputes the allegations that formed the basis of the jury’s verdict.
The judgment substantially exceeds the $5 billion privacy penalty imposed on Facebook by the US Federal Trade Commission in 2019. According to court reporting, the New Mexico penalty will also accrue annual interest of 15% until it is paid, although the appeals process could affect the final amount.
Featured image credits: Wikimedia Commons
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