'Historic Day': New Mexico Judge Orders Meta to Pay $25 Billion in Data Privacy Case
"For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law," the attorney general said.
A New Mexico judge on Wednesday ordered Meta to pay $25 billion for misleading users about data privacy—and while state Attorney General Raúl Torrez's office touted it as "one of the largest financial penalties against a corporation in US history," it's also just a fraction of the $219.5 billion warranted under the law.
The case stems from the Cambridge Analytica scandal, over which New Mexico sued in 2021. The New York Times reported that the order from Judge Francis J. Mathew of the State District Court in Santa Fe "is the biggest blow yet to Meta, which owns Facebook, Instagram, and WhatsApp, as it has racked up court losses over the harms that its social media platforms have caused users."
Reuters noted that "in 2019, the company was hit with a $5 billion penalty by the US Federal Trade Commission stemming from the same scandal. Six other states settled their lawsuits related to Cambridge Analytica for $459.2 million as part of a $17.1 billion multistate settlement Meta reached in August to resolve states' claims that the company's platforms had harmed teen mental health."
However, Torrez's state wasn't part of that settlement—and last month, a jury found that Meta had committed over 43 million violations of the New Mexico Unfair Practices Act.
That led to the order in which Mathew wrote that "the extraordinary number of willful violations found by the jury, the duration and repetition of the conduct, the breadth of subjects on which violations occurred, the involvement of senior Facebook leadership, the size of New Mexico audiences reached, and the clear intentional and systematic nature of Facebook's repeated misstatements established in the trial record support the highest level of penalty allowed by the New Mexico Unfair Practices Act—$5,000 per violation found by the jury."
Although the judge ultimately reduced the penalty to just over 11% of what Meta could have faced, the tech giant is still trying to dodge it. Chief legal officer CJ Mahoney said in a statement that the company is "confident" that it will "prevail on appeal."
"This ruling, and the attorney general’s approach to this enforcement, makes it all but impossible to do business in the state of New Mexico," Mahoney said. "At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online."
Meanwhile, Torrez celebrated "a historic day for New Mexico and for consumers across the country."
"For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law," the attorney general said. "A New Mexico jury found nearly 44 million violations of our consumer protection statute, and this penalty order demonstrates that those violations carry real consequences. We took on one of the largest companies in the world because New Mexicans deserve honesty, accountability, and the protection of their personal information. Today’s result makes clear that no corporation is too powerful to be held accountable."
"This case has always been about more than one company or one scandal,” Torrez stressed. "It is about whether corporations can mislead consumers about what happens to their personal information without facing meaningful consequences. New Mexico stood its ground, took this case to trial, and secured a verdict establishing millions of violations of our law. This outcome reinforces a fundamental principle, companies that do business in our state must follow our laws and respect the rights of our people."
It isn't Torrez's first victory against Meta. In August, Judge Bryan Biedscheid of the State District Court in Santa Fe tacked on $567 million in damages for a state case in which the company already faced $375 million in civil penalties for enabling harm to youth.
