Meta Ordered to Pay $25 Billion in New Mexico Data Breach Case
State's independent legal action against tech giant over Cambridge Analytica scandal yields substantial penalty for public education.
Carla Rooney
A judge has ordered Meta to pay $25 billion for violating New Mexico law.
The state stood alone in pursuing a trial against Meta concerning the Cambridge Analytica scandal. This independent action followed 48 other states settling with Facebook for $18 billion.
All awarded funds are designated for a state fund dedicated to public education.
A jury found Meta misled consumers in a case related to Cambridge Analytica. Jurors found 26 of 29 statements made by Meta and its leadership to be misleading.
Separately, a jury in the first trial also found Meta misled users about young users' safety on its platforms.
The state also seeks an injunction to prevent similar practices in the future.
Meta contends the penalty is unconstitutional. The company argues New Mexico failed to demonstrate direct harm to platform users.
Meta Platforms maintains it does not sell user data. The company states New Mexico did not prove any consumer had actually been misled.
Facebook's lawyers contended the state failed to prove whether individuals were actually harmed by these deceptive statements. They argued in subsequent court filings that state consumer protection laws do not apply to residents in New Mexico who were not using the platform at the time.
New Mexico indicated that The state asserts Meta tolerated hate speech or other harmful content when it benefited the company’s bottom line. The state also argued the company favored specific accounts and permitted violent or inaccurate material to proliferate.
New Mexico claims the company knew third parties had broad access to users’ personal data. The state asserts Meta tolerated hate speech or other harmful content when it benefited the company’s bottom line. The state also argued the company favored specific accounts and permitted violent or inaccurate material to proliferate.