A New Mexico judge has ordered Meta Platforms to pay $25 billion after a jury found the company misled consumers about its data privacy practices. The ruling comes from claims that millions of Facebook users' personal information was taken without their consent. Judge Francis Mathew issued the order on Wednesday after a verdict showed Meta committed over 43 million violations of New Mexico's consumer protection laws.
Key Details
The case began with the 2016 Cambridge Analytica scandal. A third-party app collected data from about 87 million Facebook profiles. New Mexico's attorney general, Raúl Torrez, filed the lawsuit in 2021. He claimed Meta misled users about who accessed their data and how it handled harmful content. The jury found that 26 out of 29 statements made by Meta on these issues were misleading.
Judge Mathew pointed out that the penalty could have been over $219 billion under state law. However, he reduced it to $25 billion. This amount is much higher than the $3.45 billion cap suggested by Meta's lawyers. The penalty funds will go to New Mexico's education system, according to Attorney General Torrez.
Background
Meta plans to keep defending itself against claims that it misrepresented its data practices. A spokesperson for the company did not respond to requests for comment right after the ruling.
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This ruling could affect Meta's financial position and investor sentiment. It comes amid ongoing regulatory scrutiny of tech companies. Investors may also look for changes in Meta's operational practices due to legal challenges. Keep an eye on Meta's upcoming earnings report, which may discuss the financial effects of this ruling.
Based on reporting by: dw.com, livemint.com