A New Mexico court ordered Meta on Wednesday to pay $25 billion in penalties in a data privacy case arising from the Cambridge Analytica scandal. A court filing disclosed the penalty. A Santa Fe jury found Meta liable in September for misleading state residents about data collection, data protection and measures to prevent harmful information from spreading through Meta's services.
The jury found more than 43 million violations of New Mexico's unfair practices act. Each violation carried a potential civil penalty of up to $5,000, but a judge had responsibility for setting the final penalty. Wednesday's filing recorded an award of $219.5 billion to the state, which was ultimately reduced to $25 billion. Meta was asked to comment on the penalty order.
Meta previously resolved Cambridge Analytica-related privacy lawsuits nationwide through an August settlement of nearly $17 billion with a coalition of state attorneys general. That settlement formed part of a separate federal case concerning child safety and mental health. New Mexico did not participate in the settlement, so New Mexico's data privacy case proceeded to trial in September.
Meta agreed in 2022 to pay $725 million to settle a class action arising from the same scandal. The scandal began in 2018, before the company led by Mark Zuckerberg changed the company's name to Meta. Allegations that political consulting firm Cambridge Analytica improperly obtained information belonging to 87 million users raised concerns about Facebook's handling of data. Former New Mexico Attorney General Hector Balderas filed the state's Cambridge Analytica-related lawsuit in 2021. Current Attorney General Raul Torrez oversaw the trial.
Torrez also led New Mexico's child-safety trial against Meta. A jury ruled in March that Meta should pay $375 million for violations of the state's unfair practices act. A New Mexico judge subsequently ordered Meta to contribute $567 million to an abatement fund during the case's second phase, which determined that Meta's actions created a public nuisance. Meta said the company disagreed with that ruling and intended to appeal.
New Mexico Court Orders Meta to Pay $25 Billion in Cambridge Analytica Case
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Summary
A New Mexico court ordered Meta to pay $25 billion in a data privacy case tied to the Cambridge Analytica scandal. The Santa Fe jury ruled in September that Meta misled residents on data practices. The original $219.5 billion penalty was cut. Meta had settled similar cases for $17 billion in 2022 and $725 million in another class action. New Mexico opted out of the prior deals. The 2018 scandal involved misuse of 87 million users’ data. The ruling aligns with global efforts under MiCA to tighten data and CFT regulations.
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