
Meta ordered to pay $25bn to New Mexico in Cambridge Analytica data-privacy case
Jury had found Meta misled consumers after TrumpâÂÂs 2016 presidential campaign obtained user data without consent
A judge in New Mexico ordered Meta Platforms to pay $25bn on â Wednesday after a jury found the company had misled consumers in a case arising from allegations that a political consulting firm involved in Donald TrumpâÂÂs 2016 presidential campaign obtained data from millions of Facebook users â without their consent.
âÂÂFacebookâÂÂs wrongdoing â â over the course of âÂÂyears and systematically broadcast to the public â goes to the heart of FacebookâÂÂs core business practices,â Judge Francis Mathew wrote in his order following the verdict.
Mathew found that a penalty of more than $219bn was warranted, based on state law, but he reduced the figure to $25bn.
A spokesperson for Meta did not immediately respond to a request for comment.
The stateâÂÂs attorney general had sued Meta in 2021 following revelations that Cambridge Analytica, â a British political consulting firm, had harvested personal data from as many as 87 million Facebook users through a third-party app.
The state accused Meta âÂÂof lying to Facebook users in New Mexico about who had âÂÂaccess to their data, how the âÂÂcompany handles hate speech and misinformation posted on the platform, and other internal policies. The company knew that third parties had broad access to âÂÂusersâ personal data, and it tolerated hate speech or other harmful content when it benefited the companyâÂÂs bottom line, the state said.
Jurors on 25 September found that 26 of 29 statements made by the company and its leadership on those issues were misleading. They said the company had committed more than 43m violations of New MexicoâÂÂs consumer protection laws, based on the number of Facebook users or New Mexico residents who were the audience for each misleading statement.
State law allows a penalty of up to $5,000 per âÂÂviolation, and directs that all of the money go to New MexicoâÂÂs school system, New MexicoâÂÂs attorney general, Raúl Torrez, told reporters after the verdict. At a hearing on 1 October, Randi McGinn, a lawyer for New Mexico, had âÂÂasked Mathew to award the state between $35bn and $40bn, saying that would be supported by the US constitutionâÂÂs protections on due process and the juryâÂÂs verdict.
âÂÂThis court should speak to Meta in the only language it understands, which is money, and the value of its stock price,â McGinn said.
In court filings, Meta urged Mathew to cap the penalties at $3.45bn, saying a higher penalty ran the risk of scaring businesses out of the â state. The evidence showed that Meta does not sell user data and New Mexico did not prove âÂÂthat any consumer had actually been misled, the âÂÂcompany said in court filings.
The âÂÂverdict was the second in six months by a Santa Fe jury in a lawsuit brought by the âÂÂstate of New Mexico against âÂÂMeta Platforms.
In the first trial, âÂÂwhich ended in March, a âÂÂSanta Fe jury found Meta misled users about young usersâ safety on its Facebook, Instagram and WhatsApp platforms and ordered the company to pay $375m in civil penalties. After a second phase of that trial, a judge directed the company to pay $567m into a New Mexico fund for teen mental health and ordered Meta to implement measures to protect teen Facebook and Instagram users in New Mexico.
