Judge orders Meta to pay New Mexico $25 billion over Facebook privacy claims
In short
A New Mexico judge ordered Meta to pay $25 billion after a jury found in September that the company misled Facebook users about their data privacy. The judge reduced a figure of about $219 billion to $25 billion, and Meta says it is confident it will prevail on appeal.
Read the full story 3 min read
A judge on Wednesday ordered Meta to pay New Mexico $25 billion after a jury found the company liable for deceiving users about privacy on Facebook. Judge Francis Mathew handed down the amount. ABC News reported that the jury found Meta liable for deceiving users about privacy and content moderation policies. [ 2 , 10 ]
CNBC reported that the penalty was revealed in a court filing and that the jury had found more than 43 million violations of the state's unfair practices act, each carrying a civil penalty as high as $5,000. The filing showed the state was awarded $219.5 billion, but the penalty was reduced to $25 billion, CNBC said. The Guardian also reported that Mathew found a penalty of more than $219 billion was warranted under state law before reducing it. According to CNBC, Mathew wrote that the record supported the highest level of penalty, $5,000 per violation, and that interest would accrue at 15% each year until the fine is paid in full. [ 3 , 14 ]
Jurors found on 25 September that 26 of 29 statements made by the company and its leadership were misleading, The Guardian reported. CBS News reported that the jury found Facebook falsely told consumers they controlled how their information was shared and claimed it did not sell or share personal information with advertisers. CBS said the judge ruled that the company's most senior leadership, including Mark Zuckerberg and Sheryl Sandberg, made misrepresentations. Mathew wrote, "Facebook promised users that they (the users) controlled their data. This was false," according to the Boston Globe. [ 2 , 13 , 14 ]
Torrez said at a news conference that the judgment should be "a signal, an unambiguous message, to Silicon Valley." He described the amount as "one of the largest, if not the single largest state verdict against a company in American history," ABC News reported. Under the New Mexico Constitution, fines for violations of consumer protection laws go toward state education spending, and Torrez acknowledged that the money would be tied up if Meta appeals. The state's attorneys had sought $35 billion to $40 billion. [ 2 , 10 , 19 ]
Meta chief legal officer C.J. Mahoney said in a statement that the company is confident it will "prevail on appeal." CBS News quoted him as saying the ruling and the attorney general's approach make it "all but impossible to do business in the state of New Mexico." Meta representatives did not immediately respond to a request for comment about the amount in other reports, which also said the company was scheduled to report quarterly earnings on Wednesday afternoon and that its shares were trading 2% higher after the announcement. [ 2 , 3 , 10 , 13 , 19 ]
The state's attorney general sued Meta in 2021 after reports that Cambridge Analytica, a British political consulting firm, had harvested data from as many as 87 million Facebook users through a third-party app, according to The Guardian. In August, Meta reached a settlement with nearly all states and territories, except New Mexico and Florida, to pay $18 billion and add child-safety measures. New Mexico was not part of it because it was pursuing its own case. [ 2 , 14 , 19 ]
Why it matters
State Attorney General Raúl Torrez said the order should be a signal to Silicon Valley that New Mexico will hold tech companies accountable. Meta says it will appeal, so the outcome of the penalty is not yet settled.
Key facts
- A judge ordered Meta to pay New Mexico $25 billion after a jury found the company liable for deceiving users about privacy on Facebook. [ 2 , 3 , 10 , 14 , 19 ]
- The jury found in September that Meta committed more than 43 million violations of New Mexico consumer protection laws. [ 2 , 3 , 10 , 14 , 19 ]
- Judge Francis Mathew reduced a penalty of more than $219 billion to $25 billion. [ 3 , 14 ]
- Interest on the penalty is to accrue at 15% a year until it is paid in full, according to CNBC. [ 3 ]
- New Mexico's attorneys had sought $35 billion to $40 billion. [ 2 , 10 ]
- Meta's chief legal officer C.J. Mahoney said the company is confident it will prevail on appeal. [ 3 , 13 ]
- Under the New Mexico Constitution, fines for consumer protection violations go toward state education spending. [ 10 , 19 ]
Confirmed by several sources
- A judge ordered Meta to pay New Mexico $25 billion on Wednesday after a jury found the company liable for deceiving users about privacy on Facebook. [ 2 , 3 , 10 , 14 , 19 ]
- The jury found Meta liable for more than 43 million violations of New Mexico consumer protection laws. [ 2 , 3 , 10 , 14 , 19 ]
- The judge reduced a penalty of about $219 billion to $25 billion. [ 3 , 14 ]
- Meta said it plans to appeal. [ 2 , 3 , 10 , 13 , 17 , 19 ]
- Fines for consumer protection violations go toward state education spending under the New Mexico Constitution. [ 10 , 19 ]
Still unclear
- Whether this is the largest penalty ever against Meta or in the United States. Boston Globe and PBS call it the biggest fine ever against Meta, Business Insider says it could be the largest in company history, and the New York Times calls it one of the largest; Torrez said it was one of the largest, if not the single largest, state verdict against a company in American history.
- How many Facebook users had data harvested by Cambridge Analytica. The New York Post, The Guardian and CBS cite as many as or roughly 87 million, while Axios cites more than 50 million.
- When New Mexico will receive the money. Torrez acknowledged the money would be tied up if Meta appeals, and Meta has said it plans to appeal.
- Meta's response to the amount itself. Meta representatives did not immediately respond to a request for comment on the amount in several reports; Mahoney's statement, reported by CNBC and CBS, said the company is confident it will prevail on appeal.
- The state's attorney general sued Meta in 2021 after Cambridge Analytica harvested Facebook user data through a third-party app. Reported by a single source so far
What local media are saying
Timeline, local time
- Reuters published the first report in the set that Meta was ordered to pay $25 billion to New Mexico. [ 1 ]
- CNBC reported that the penalty was revealed in a court filing on Wednesday. [ 3 ]
- ABC News reported that Torrez said at a news conference the verdict should be a warning for tech companies. [ 10 ]