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Meta ordered to pay $25B in New Mexico Cambridge Analytica case
CNBC • • business
Key Points:
- A New Mexico court ordered Meta to pay $25 billion in penalties related to a data privacy case stemming from the Cambridge Analytica scandal, following a jury finding that Meta misled state citizens about data protection practices.
- The jury identified over 43 million violations of New Mexico's unfair practices act, with penalties up to $5,000 per violation; the judge reduced the total penalty from $219.5 billion to $25 billion.
- The judge cited willful and systematic misstatements by Facebook leadership, inadequate internal investigations, and intentional misconduct as reasons for imposing the maximum penalty allowed.
- Meta was not part of a prior $17 billion national settlement related to Cambridge Analytica, allowing New Mexico's case to proceed independently, and the company has indicated plans to appeal similar rulings in the state.
- The ruling reflects ongoing legal challenges for Meta over data privacy and child safety issues, with previous settlements including a $725 million class action and a $375 million jury verdict in New Mexico on related matters.
