New Mexico Judge Fines Meta 25 Billion Dollars Over Privacy Breaches
A New Mexico state court judge has imposed a penalty against Meta regarding Facebook privacy agreements and granting political consultancy Cambridge Analytica improper access to personal data, expansion.com reported. The judgment follows a trial where a state jury found the technology company responsible for more than 43 million violations of local consumer protection laws. Meta shares gained approximately 1.5 percent following the New Mexico court decision, which came after a ruling in a case where the company faced a potential penalty that could have reached 40 billion dollars.
State officials pursued the separate litigation after 48 other U.S. states settled nationwide claims against the social media platform. New Mexico attorneys initially requested between 35 billion and 40 billion dollars, arguing that only a severe financial penalty would force corporate policy changes. Meta countered that any penalty exceeding 3.4 billion dollars would be unconstitutional. With the final decision, the penalty imposed by a New Mexico state court stands as one of the largest fines ever levied against an American company in history.
State Officials and Silicon Valley Face Off Over Record Penalty
New Mexico Attorney General Raúl Torrez described the verdict as one of the largest state-level judgments against a corporation in United States history. Torrez stated that the ruling serves as an unequivocal message to Silicon Valley regarding consumer privacy standards. Under state constitutional provisions, consumer protection penalties feed the state education budget. Torrez noted that the funds could potentially finance school construction for a century, though the money remains frozen pending expected appeals from Meta.
The penalty stems from the 2016 electoral cycle, when Cambridge Analytica harvested user data without authorization to build targeted political advertisements. That data supported Donald Trump’s successful presidential campaign against Democratic nominee Hillary Clinton. Meta reported the judicial setback just hours before releasing quarterly financial results that surpassed market expectations.
Quarterly Earnings Rise Despite Ongoing Legal Pressure
Meta reported a 264 percent increase in quarterly net income to 9.86 billion dollars, recovering from a prior-year period affected by a 25.47 billion dollar extraordinary tax charge. Revenue climbed 26 percent to 64.6 billion dollars, topping analyst projections of 63.37 billion dollars. Mark Zuckerberg highlighted ongoing investments in personal artificial intelligence models during the earnings announcement. Group shares rose 4 percent overnight in Wall Street after-hours trading, compared to a year-to-date gain of 5.7 percent that trailed the Nasdaq’s 14.8 percent.
The privacy penalty compounds recent legal challenges for the parent company of Facebook, Instagram, and WhatsApp. In August, Meta agreed to a 17 billion dollar settlement addressing allegations that its platforms generate youth addiction and mental health harms. Company shares gained approximately 1.5 percent following the New Mexico court decision.
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