Meta faces $25bn penalty in New Mexico as remaining claims loom
A New Mexico judge ordered Meta to pay $25 billion after a jury found it misled users about data protection and its handling of misinformation and hate speech. The ruling dwarfs a $17 billion settlement accepted by attorneys general from most other states and could encourage governments and private claimants to pursue remaining cases more aggressively, or seek larger settlements.
The order concerns millions of alleged violations of New Mexico’s unfair practices law linked to the 2018 Cambridge Analytica scandal, and Meta says it will appeal. Most other states settled covered claims, including children’s online safety claims, for $459 million; that deal also included product commitments such as restrictions on teen use and offered a quicker, more certain outcome. The District of Columbia did not settle its Cambridge Analytica claims, while states that settled may still pursue cases involving other platforms.
In short
- New Mexico ordered Meta to pay $25 billion.
- Meta says it will appeal the ruling.
- The decision could influence other tech lawsuits.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The $25 billion order can be seen as a proportionate response to millions of alleged violations and to the seriousness of misleading users about data protection and harmful content. A large penalty may strengthen accountability and deter companies from treating consumer protection as a manageable cost, while encouraging governments and claimants to pursue unresolved cases.
The case against
Meta can argue that the order is excessive, especially compared with the $459 million settlement accepted by most other states, which also secured product commitments and a faster, more certain resolution. The company may contend that the claims and legal findings should be tested on appeal, and that exceptionally large penalties risk creating unpredictable liability across cases that were otherwise settled.
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Originally published by The Verge as “Meta’s $25 billion legal loss just put blood in the water”.