The Cambridge Analytica scandal has resurfaced with significant financial consequences for Meta, as a New Mexico judge ordered the company to pay $25 billion in penalties. The ruling addresses more than 43 million violations of the state’s unfair practices law, marking Meta's most substantial legal setback this year.
The Basis of the Ruling
In September, a New Mexico jury found that Meta misled consumers regarding its data protection measures and its efforts to curb misinformation and hate speech. The legal action originated from a 2021 complaint following revelations that the UK-based consultancy Cambridge Analytica harvested data from millions of Facebook accounts to target voters during Donald Trump’s first presidential campaign.
The presiding judge cited an “extraordinary number of willful violations,” the involvement of senior Facebook leadership, and the repetitive nature of the conduct as justification for the maximum penalty of $5,000 per violation. While the total civil penalties initially calculated to over $219 billion, the judge reduced the final amount to $25 billion.
Meta’s Defense and Legal Context
Meta’s chief legal officer, C.J. Mahoney, criticized the ruling, stating it makes it "all but impossible to do business in the state of New Mexico." He characterized the lawsuit as an attempt to "impose a tax on speech" and confirmed that the company plans to appeal the decision.
Even with the reduction, the $25 billion figure stands as one of the largest corporate financial penalties in U.S. history. It significantly exceeds other recent legal costs for Meta, such as a $17.1 billion settlement regarding kids' online safety and a separate $1 billion penalty in New Mexico for misleading the public about product safety.
“This case has always been about more than one company or one scandal,” said New Mexico Attorney General Raúl Torrez. “It is about whether corporations can mislead consumers about what happens to their personal information without facing meaningful consequences.”
