Meta ordered to pay $25B in New Mexico case
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The gist
A New Mexico judge ordered Meta to pay $25 billion over misleading users about data privacy.
Meta says it will appeal, so the final cost is far from settled.
Background
Meta Platforms is the social media giant that owns Facebook, Instagram and WhatsApp. The case grew out of the Cambridge Analytica scandal, in which the now-defunct political consulting firm worked for Donald Trump's 2016 campaign and gained access to personal data from millions of Facebook accounts. New Mexico's attorney general sued in 2021, and the state was not part of Meta's August settlement of nearly $17 billion with a coalition of state attorneys general in a separate federal child-safety case, so its data privacy case went to trial in September.
How it unfolded
- 2018The Cambridge Analytica scandal broke, focused on allegations the firm improperly accessed the information of 87 million users.
- 2021Then-New Mexico Attorney General Hector Balderas filed the state's Cambridge Analytica-related lawsuit against Meta.
- Sep 25, 2026Jurors found 26 of 29 statements by Meta and its leadership misleading and that the company committed more than 43 million violations of New Mexico's consumer protection laws.
- Oct 1, 2026A hearing was held to determine penalties against Meta, with attorney Matthew Nicholson representing the company.
- Oct 21, 2026Judge Francis Mathew ordered Meta to pay $25 billion, finding a penalty of more than $219 billion was warranted but reducing it, with 15% annual interest until paid.
Who’s saying what
- Official
- New Mexico Attorney General Raúl Torrez called the judgment one of the largest single state verdicts against the company in US history and a clear warning to Silicon Valley.
- Party
- Meta chief legal officer C.J. Mahoney said the company is confident it will win on appeal and that the ruling makes it all but impossible to do business in New Mexico.
- Analysts
- Gil Luria of D.A. Davidson & Co said the ruling is costly but unlikely to affect Meta's value, given the company is worth nearly two trillion dollars and will likely keep appealing.
- Expert
- Vincent Joralemon of the Berkeley Center for Law and Technology said the takeaway is that consumer protection laws will be the way to hold tech companies accountable.
Still unverified
The sources describe the underlying Cambridge Analytica conduct as allegations that the firm improperly accessed user information.