New Mexico Court Orders Meta To Pay $25 Billion Over Facebook Privacy Violations

Meta Platforms has been ordered to pay $25 billion in civil penalties after a New Mexico court found the company liable for misleading Facebook users about data privacy and other platform practices. The ruling stems from the Cambridge Analytica scandal, with Meta preparing to challenge the decision.

The October 21, 2026, order follows a September jury verdict finding nearly 44 million violations of New Mexico's Unfair Practices Act. However, the $25 billion penalty could face a lengthy legal battle as Meta plans to appeal.

Here's what happened.

TL;DR

 

• A New Mexico judge ordered Meta to pay $25 billion over deceptive statements about Facebook's privacy and platform practices.
• Jurors identified 43,899,725 violations of state consumer protection law.
• The court reduced a potential penalty exceeding $219 billion to $25 billion.
• Meta disputes the ruling and plans to appeal, meaning the financial outcome remains subject to further litigation.

Why Was Meta Ordered To Pay $25 Billion?

The ruling was issued by New Mexico District Judge Francis J. Mathew on October 21, 2026, following a jury verdict delivered on September 25.

According to Reuters, the case originated from a lawsuit filed by New Mexico's attorney general in 2021, accusing Meta, formerly Facebook, of misleading users about who could access their personal information.

Source

The lawsuit followed revelations surrounding Cambridge Analytica, the now-defunct British political consulting company that obtained personal information from as many as 87 million Facebook users through a third-party application.

The information was used for voter profiling and political advertising, including activities associated with Donald Trump's 2016 US presidential campaign.

However, the case extended beyond Cambridge Analytica.

New Mexico also challenged statements concerning Facebook's handling of misinformation, hate speech, third-party data access, and other internal platform policies.

According to The Guardian, jurors determined that 26 of 29 statements examined during the trial were misleading.

These findings included representations made by Meta and its leadership about how the platform handled personal information and the protections users could expect.

The court concluded that Meta's conduct involved intentional deception, making it liable under New Mexico's consumer protection law.

How Did The $219 Billion Potential Penalty Become $25 Billion?

The size of the penalty is one of the most significant aspects of the judgment.

According to the New Mexico Department of Justice, the jury identified 43,899,725 violations of the state's Unfair Practices Act.

Under state law, willful violations can attract penalties of up to $5,000 each.

This meant the maximum financial exposure calculated by the court exceeded $219 billion.

However, Judge Mathew reduced the final civil penalty to $25 billion, an amount that still substantially exceeds the $5 billion penalty imposed on Facebook by the US Federal Trade Commission in 2019 over privacy-related violations.

As reported by Gizbot, New Mexico had sought a penalty between $35 billion and $40 billion, while Meta's legal team argued that any penalty should be capped at approximately $3.4 billion.

The state maintained that a substantial financial sanction was necessary to hold the technology giant accountable for its conduct.

The order also provides for interest on the judgment, potentially increasing Meta's financial exposure while the appeals process continues.

What Did Meta And New Mexico Officials Say?

Meta has rejected the ruling and confirmed its intention to appeal.

In a statement reported by Reuters, Meta Chief Legal Officer C.J. Mahoney said the ruling and New Mexico's enforcement approach made it extremely difficult for the company to operate in the state.

"At its core, this lawsuit seeks to impose a tax on speech," Mahoney said, arguing that the case attempts to regulate what people can say online.

 

Meta also maintained during the proceedings that New Mexico had not established actual consumer harm from the challenged statements and argued that the proposed penalties were unconstitutional.

Meanwhile, New Mexico Attorney General Raúl Torrez described the judgment as a major step toward holding technology companies accountable.

In an official statement, Torrez said, "This case has always been about more than one company or one scandal."

He emphasized that companies operating in New Mexico must respect consumer rights and comply with state laws governing deceptive business practices.

What Happens Next For Meta?

The $25 billion judgment does not mean Meta has already paid the penalty.

As Associated Press reported, the company intends to appeal, and further litigation could affect both the number of violations upheld and the final amount payable.

Under New Mexico's Constitution, penalties collected for violations of consumer protection laws are directed toward education, although the appeals process could delay any distribution.

The ruling also arrives amid other legal challenges involving Meta's social media platforms, including litigation concerning the safety of younger users.

For social media companies, the latest judgment highlights the financial consequences that can arise when public statements about privacy, user control, and platform practices are found to violate consumer protection laws.

For Meta, the immediate challenge is overturning or reducing one of the largest financial penalties it has faced, while the broader questions surrounding user data and corporate accountability remain under scrutiny.