Judge orders Meta to pay $25 billion in New Mexico case

Investing.com -- A New Mexico judge ordered Meta Platforms to pay $25 billion on Wednesday following a jury decision that found the company misled consumers about data privacy and platform policies.

The case stems from a 2021 lawsuit filed by New Mexico’s attorney general after Cambridge Analytica, a British political consulting firm involved in Donald Trump’s 2016 presidential campaign, obtained personal data from up to 87 million Facebook users through a third-party app without their consent.

New Mexico accused Meta of lying to Facebook users about data access, the company’s handling of hate speech and misinformation, and other internal policies. The state claimed Meta knew third parties had broad access to user data and tolerated harmful content when it benefited the company financially.

On September 25, jurors found that 26 of 29 statements made by Meta and its leadership were misleading. The jury determined the company committed more than 43 million violations of New Mexico’s consumer protection laws, based on the number of Facebook users or state residents who saw each misleading statement.

State law permits penalties of up to $5,000 per violation. All funds will go to New Mexico’s school system, Attorney General Raúl Torrez told reporters.

At an October 1 hearing, Randi McGinn, a lawyer for New Mexico, requested the judge award between $35 billion and $40 billion. "This court should speak to Meta in the only language it understands, which is money, and the value of its stock price," McGinn said.

Meta asked the judge to limit penalties to $3.45 billion, arguing a higher amount could discourage businesses from operating in the state. The company stated it does not sell user data and New Mexico failed to prove any consumer was actually misled.

This marks the second jury verdict in six months against Meta in New Mexico. In March, a Santa Fe jury found Meta misled users about young users’ safety on Facebook, Instagram and WhatsApp, ordering the company to pay $375 million. A judge later directed Meta to pay an additional $567 million into a New Mexico fund for teen mental health.

Meta shares traded roughly 1.8% higher on Wednesday.

Original Article

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