A New Mexico judge ordered Meta Platforms to pay $25 billion after a jury found the company misled consumers in a case arising from the Cambridge Analytica data scandal, marking another massive financial blow for the tech giant.
A New Mexico judge, Francis Mathew, has ordered Meta Platforms to pay $25 billion after a jury concluded the company misled consumers in a case linked to allegations that Cambridge Analytica, a political consulting firm, obtained data from millions of Facebook users without consent. The judge reduced the penalty from an initially warranted figure of over $219 billion based on state law. The lawsuit, filed by New Mexico's attorney general in 2021, accused Meta of lying to users about data access, handling of hate speech, and internal policies, knowing third parties had broad access to personal data. Jurors found Meta committed over 43 million violations of New Mexico’s consumer protection laws, with the funds directed to the state's school system. This substantial payment contributes to Meta's growing financial settlements, including a recent $9.9 billion payment that impacted its net income and a $17 billion agreement to settle a nationwide lawsuit regarding addictive products harming children. Despite these payouts, Meta still reported a 26% increase in quarterly revenue. This is the second significant verdict against Meta in New Mexico, following a March trial where it was ordered to pay $375 million for misleading users about youth safety, and a subsequent $567 million into a fund for teen mental health.
