New Mexico seeks up to $40 billion in penalties from Meta after privacy trial

• Jury found 26 of 29 Meta statements misleading, amounting to more than 43 million violations of New Mexico consumer protection laws at up to $5,000 per violation
• New Mexico's requested $35-40 billion represents about 20% of maximum possible penalties under state law, designed to impact Meta's stock price while complying with constitutional due process protections
• Meta argues the penalty request is 'astronomical' and unconstitutional, claiming no evidence proved consumers were actually misled or that the company sells user data

Summary: New Mexico Seeks Up to $40 Billion in Penalties from Meta After Privacy Trial

New Mexico is requesting a judge order Meta Platforms to pay between $35 billion and $40 billion in penalties following a jury verdict on September 25 that found the company made misleading statements about data privacy and security. The lawsuit, filed in 2021, stems from the Cambridge Analytica scandal where the firm harvested personal data from up to 87 million Facebook users during the 2016 presidential campaign.

Key Facts:

• Jury found 26 of 29 examined statements misleading, constituting over 43 million violations of New Mexico's consumer protection laws
• State law permits up to $5,000 per violation, which could theoretically total over $200 billion
• New Mexico seeks $35-40 billion (approximately 20% of maximum penalties) to avoid constitutional due process violations
• Meta argues penalties should be capped at $3.45 billion, calling the state's request "astronomical"

Legal Arguments:

New Mexico's attorney stated the penalty should "speak to Meta in the only language it understands, which is money, and the value of its stock price." Meta contends the proposed penalties don't match trial conduct and that the company doesn't sell user data, with no proven consumer harm.

Judge Francis Mathew will determine the final penalty amount, with a ruling expected later this month. The judge noted that parties who "roll the dice" by going to trial must accept the consequences.

Market Implications:

The requested penalty amount represents a significant potential financial liability for Meta, with New Mexico explicitly targeting an amount large enough to impact the company's stock price. The final ruling could set important precedents for corporate accountability regarding data privacy claims.