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New Mexico Seeks Up to $40 Billion in Penalties From Meta Over Facebook Privacy Case

Meta faces up to $40 billion in penalties as New Mexico seeks damages after a jury found misleading Facebook privacy statements.
Meta faces up to $40 billion in penalties in New Mexico over Facebook data privacy violations linked to Cambridge Analytica.

New Mexico is asking a state judge to order Meta Platforms to pay between $35 billion and $40 billion in penalties after a jury found that the company misled consumers about Facebook data privacy practices in a case linked to the Cambridge Analytica scandal.

Jury Found More Than 43 Million Violations

The request follows a September 25 verdict in which jurors found Meta responsible for 43,899,725 violations of New Mexico’s Unfair Practices Act. The jury reviewed 29 statements made by Meta and its leadership and determined that 26 were misleading.

The case concerned statements about how Facebook collected, protected, shared and used personal information, as well as representations concerning misinformation, hate speech and the company’s response to third-party applications that had accessed user data.

The lawsuit, filed in 2021, followed revelations surrounding Cambridge Analytica, the British political consulting firm that obtained personal information from as many as 87 million Facebook users through a third-party application without their consent.

Meta Challenges Proposed Penalty

New Mexico's request is below the theoretical maximum available under state law. Courts can impose civil penalties of up to $5,000 for each willful violation, meaning the verdict could otherwise expose Meta to more than $200 billion in potential penalties.

At a hearing, attorney Randi McGinn argued that a $35 billion to $40 billion award would provide a substantial penalty while avoiding potential constitutional due-process concerns associated with applying the maximum amount to every violation.

Meta has opposed the state's request. The company has argued that the proposed amount is excessive and asked the judge to cap the penalties at $3.45 billion. Meta also argued that the evidence did not establish that consumers were actually misled and maintained that it does not sell users' data.

The jury verdict addressed Meta's liability, while the amount of any financial penalty remains for Judge Francis Mathew to determine.

Judge Expected to Decide Penalties

The dispute over the amount of the penalty now moves to the next stage of the case in New Mexico state court. Judge Mathew, who presided over the trial in Santa Fe, said he expected to issue a ruling later this month.

The final award will therefore depend on the judge's determination rather than the $35 billion to $40 billion figure requested by New Mexico.

Cointelegraph 

Writer: Ethan Collins  

Crypto Journalist

Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.

He focuses on presenting complex topics in a clear and accessible manner for a broad readership.

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