Meta Ordered to Pay $25 Billion in Privacy Case
A New Mexico court has ordered Meta Platforms, the parent company of Facebook and Instagram, to pay a $25 billion civil penalty after a jury found that the technology company misled users about data privacy and content moderation practices. The ruling, delivered on October 21, 2026, stems from the Cambridge Analytica scandal and represents one of the largest financial penalties imposed on a technology company in US history.
Meta Faces $25 Billion Penalty Over Facebook Privacy
Judge Francis Mathew issued the judgment after a Santa Fe jury found Meta responsible for approximately 43.9 million violations of New Mexico’s Unfair Practices Act.
The violations involved misleading statements about how Facebook handled personal information, protected user privacy and addressed misinformation and harmful content.
The court initially calculated a potential penalty of approximately $219.5 billion before reducing the amount to $25 billion.
Cambridge Analytica Scandal Behind New Mexico Lawsuit
New Mexico filed its lawsuit in 2021 following revelations that political consulting firm Cambridge Analytica had improperly obtained personal information belonging to as many as 87 million Facebook users.
The data was used to develop voter profiles and support political advertising during the 2016 US presidential election.
State Attorney General Raúl Torrez argued that Facebook repeatedly misrepresented its data protection practices, preventing users from making informed decisions about their personal information.
Meta Plans Appeal Against Record Privacy Judgment
Meta has rejected the ruling and announced plans to appeal, arguing that the penalty violates constitutional protections and could undermine its ability to operate in New Mexico.
The company has previously faced major regulatory penalties, including a $5 billion settlement with the US Federal Trade Commission in 2019.
The latest judgment adds to growing legal scrutiny of major technology companies over consumer privacy, online safety and corporate accountability.
