Meta faces $25 billion penalty in New Mexico privacy case: Plans to appeal ruling
The verdict adds to Meta’s legal troubles over user privacy and platform safety, as the company challenges the penalty and faces further scrutiny over its social media platforms.
- Oct 22, 2026,
- Updated Oct 22, 2026 6:00 PM IST
Meta has been ordered to pay New Mexico $25 billion after a judge ruled that the company misled consumers about data privacy and other aspects of its social media platforms. The order follows a September jury verdict that found 26 of 29 statements made by Meta and its leadership to be misleading, resulting in more than 43 million violations of the state’s consumer protection laws. The case stems partly from the Cambridge Analytica scandal, which exposed how data from millions of Facebook users was obtained without their consent.
However, the allegations extended beyond data access to the company’s handling of hate speech and misinformation. Meta has said it plans to appeal the decision, setting up a potentially lengthy legal fight over one of the largest financial penalties imposed on a company in US history.
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Why New Mexico ordered Meta to pay $25 billion
According to Reuters, New Mexico’s attorney general sued Meta in 2021 after Cambridge Analytica, a now-defunct British political consulting firm involved in Donald Trump’s 2016 presidential campaign, obtained personal data from as many as 87 million Facebook users through a third-party app. The firm used the information to profile and target voters.
The state accused Meta of misleading users about who could access their data and alleged that the company tolerated hate speech and other harmful content when it benefited its business. Judge Francis Mathew said a penalty exceeding $219 billion was warranted under state law but reduced it to $25 billion. At an October 1 hearing, the state had sought between $35 billion and $40 billion.
New Mexico Attorney General Raúl Torrez called the ruling a warning to technology companies. Earlier in 2026, the state had also won $942 million across two trials involving claims that Meta’s platforms facilitated sexual exploitation of young people and misled consumers about safety.
Meta challenges the ruling amid wider legal scrutiny
Meta’s chief legal officer, C.J. Mahoney, said the company was confident it would win on appeal. Meta had asked the court to cap the penalty at $3.45 billion, arguing that it did not sell user data and that the state had not proved consumers were actually misled.
Meta previously faced a $5 billion Federal Trade Commission penalty in 2019 over Cambridge Analytica. Six other states also settled related claims for $459.2 million as part of a $17.1 billion multistate settlement in August over allegations that social media platforms harmed teenagers’ mental health.
Meta continues to face thousands of lawsuits and scrutiny from lawmakers. An analyst Reuters cited said the penalty was costly but unlikely to significantly affect the company’s valuation, given its nearly $2 trillion market cap.
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Meta has been ordered to pay New Mexico $25 billion after a judge ruled that the company misled consumers about data privacy and other aspects of its social media platforms. The order follows a September jury verdict that found 26 of 29 statements made by Meta and its leadership to be misleading, resulting in more than 43 million violations of the state’s consumer protection laws. The case stems partly from the Cambridge Analytica scandal, which exposed how data from millions of Facebook users was obtained without their consent.
However, the allegations extended beyond data access to the company’s handling of hate speech and misinformation. Meta has said it plans to appeal the decision, setting up a potentially lengthy legal fight over one of the largest financial penalties imposed on a company in US history.
MUST READ | 'MAKE DEALS, and get them built': Trump tells tech giants to give local communities data centre 'dividend'
Why New Mexico ordered Meta to pay $25 billion
According to Reuters, New Mexico’s attorney general sued Meta in 2021 after Cambridge Analytica, a now-defunct British political consulting firm involved in Donald Trump’s 2016 presidential campaign, obtained personal data from as many as 87 million Facebook users through a third-party app. The firm used the information to profile and target voters.
The state accused Meta of misleading users about who could access their data and alleged that the company tolerated hate speech and other harmful content when it benefited its business. Judge Francis Mathew said a penalty exceeding $219 billion was warranted under state law but reduced it to $25 billion. At an October 1 hearing, the state had sought between $35 billion and $40 billion.
New Mexico Attorney General Raúl Torrez called the ruling a warning to technology companies. Earlier in 2026, the state had also won $942 million across two trials involving claims that Meta’s platforms facilitated sexual exploitation of young people and misled consumers about safety.
Meta challenges the ruling amid wider legal scrutiny
Meta’s chief legal officer, C.J. Mahoney, said the company was confident it would win on appeal. Meta had asked the court to cap the penalty at $3.45 billion, arguing that it did not sell user data and that the state had not proved consumers were actually misled.
Meta previously faced a $5 billion Federal Trade Commission penalty in 2019 over Cambridge Analytica. Six other states also settled related claims for $459.2 million as part of a $17.1 billion multistate settlement in August over allegations that social media platforms harmed teenagers’ mental health.
Meta continues to face thousands of lawsuits and scrutiny from lawmakers. An analyst Reuters cited said the penalty was costly but unlikely to significantly affect the company’s valuation, given its nearly $2 trillion market cap.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine