New Mexico Seeks Up to $40 Billion Penalty from Meta in Data Privacy Case

The state of New Mexico has formally requested that a judge order Meta Platforms (META) to pay between $35 billion and $40 billion in penalties. The request follows a jury verdict on September 25 that found the social media giant misled consumers about the privacy of their data on its Facebook platform.

State's Argument for a Landmark Fine

At a hearing on Thursday, attorneys for New Mexico argued for a substantial penalty after a jury found Meta had committed more than 43 million violations of the state's consumer protection laws. The case, which originated from the Cambridge Analytica scandal, centered on 29 statements made by the company and its leadership, 26 of which jurors found to be misleading.

New Mexico's consumer protection law allows for fines of up to $5,000 per violation. Randi McGinn, an attorney for the state, acknowledged that applying the maximum penalty would be excessive under the U.S. Constitution but argued for a significant sum. She proposed the $35 billion to $40 billion figure, representing about 20% of the maximum possible penalty, stating the court should speak to Meta "in the only language it understands, which is money."

Meta Contests 'Astronomical' Penalty

Meta has strongly opposed the state's request, calling it an "astronomical penalty that would obviously violate a host of constitutional provisions," according to company lawyer Matt Nicholson. In court filings, Meta has urged the judge to cap any potential fine at $3.45 billion.

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The company argued at trial that the statements in question were "cherry-picked snippets" and that it had acknowledged its systems were not perfect. Meta's legal team also contends that New Mexico failed to prove any specific consumer was actually misled by the statements.

Background and Next Steps

The lawsuit was first filed in 2021, following revelations that political consulting firm Cambridge Analytica had improperly accessed the data of as many as 87 million Facebook users. The trial focused on Meta's representations to users regarding data access, hate speech, and misinformation.

Judge Francis Mathew of the First Judicial District Court of New Mexico, who is overseeing the case, will ultimately decide the size of the financial penalty. Commenting on the high stakes of the trial, Judge Mathew noted, "When the parties go to trial, they roll the dice. They have to accept the consequences of their decision to go to trial." A ruling on the penalty amount is expected later this month.