New Mexico seeks $40B penalty against Meta over data privacy

New Mexico is pushing for substantial financial penalties against Meta following a jury ruling that sided with the state in a lawsuit over the Cambridge Analytica data breach. State authorities have requested that a judge order Meta to pay between $35 billion and $40 billion, according to reports.

The case stems from a 2021 lawsuit in which New Mexico accused Meta of deceiving users about how it protects their personal information. The underlying scandal involved Cambridge Analytica, a British political consulting firm that obtained data from more than 50 million Facebook users without their permission and used it for political advertising purposes.

In late September, a New Mexico jury ruled in favor of the state, determining that Meta had violated the state's Unfair Practices Act and made misleading statements to residents regarding privacy protections and content moderation. The jury's findings were substantial: jurors examined 29 statements Meta had made related to the case and determined 26 of them were deceptive. Based on the number of Facebook users in New Mexico who were exposed to those statements, the jury found Meta had committed approximately 43 million violations of state consumer protection laws. Theoretically, the state could seek up to $219 billion under the jury's verdict.

New Mexico's attorney general argued that penalties must be severe enough to meaningfully affect the company's operations and financial standing. She stated that the court should impose consequences that would resonate with Meta's business priorities, particularly its stock valuation. The attorney expressed confidence that the requested amount would withstand an appeals court challenge if Meta contests the decision.

Meta has countered by asking the court to limit penalties to $3.45 billion, contending that the state failed to demonstrate that any New Mexico residents were actually harmed by the company's statements. The judge is expected to issue a ruling later this month.