KEY POINTS
- The state of New Mexico has asked a judge to order Meta Platforms to pay between $35 billion and $40 billion in penalties following a jury verdict finding the company misled consumers about data privacy.
- The legal action stems from revelations tied to the Cambridge Analytica scandal, where personal data from millions of Facebook users was harvested without consent.
- Meta has argued against the multi-billion-dollar demand, asking for penalties to be capped at $3.45 billion as the judge prepares to issue a final ruling later this month.
MAIN STORY
New Mexico legal representatives urged a state court judge on Thursday to penalize Meta Platforms between $35 billion and $40 billion, following a September 25 jury verdict that determined the tech giant deceived consumers regarding privacy practices on Facebook.
The high-stakes litigation originates from fallout over the Cambridge Analytica controversy, which exposed how personal data belonging to up to 87 million users was improperly harvested via a third-party application during the 2016 US presidential election cycle.
During the trial in Santa Fe overseen by Judge Francis Mathew, jurors evaluated 29 statements issued by Meta and its executives regarding data access, internal policies, and content moderation, ultimately ruling that 26 of those statements were misleading.
The jury concluded that the tech company committed more than 43 million violations of state consumer protection laws, calculated based on the audience reach of each misleading declaration. State law permits penalties of up to $5,000 per violation.
Arguing for the substantial financial assessment, state attorney Randi McGinn acknowledged that applying the maximum statutory fine would violate constitutional due process limits, but maintained that a $35 billion to $40 billion penalty representing roughly 20 percent of maximum potential fines was necessary to appropriately impact the corporation’s valuation.
Conversely, Meta’s legal counsel, Matt Nicholson, dismissed the state’s request as an astronomical figure that breaches constitutional provisions. In separate court submissions, Meta contended that the disputed statements were taken out of context, that user data was never sold, and that penalties should not exceed $3.45 billion. Judge Mathew indicated he will deliver his final ruling later in the month.
THE ISSUES
- Enforcing state consumer protection statutes against multinational technology platforms highlights the growing legal and financial risks associated with historical data privacy breaches.
- Determining proportionate civil penalties for digital infractions requires balancing constitutional due process constraints against corporate deterrence objectives.
WHAT’S BEING SAID
“This court should speak to Meta in the only language it understands, which is money, and the value of its stock price.” – Randi McGinn, Attorney for New Mexico
“Well, when the parties go to trial, they roll the dice. They have to accept the consequences of their decision to go to trial, do they not?” – Judge Francis Mathew, First Judicial District Court of New Mexico
WHAT’S NEXT
Judge Francis Mathew is expected to issue a formal ruling later this month to determine the exact financial penalty Meta must pay.
BOTTOM LINE
New Mexico is pressing for a historic $35 billion to $40 billion penalty against Meta after a jury found the platform misled users in a landmark privacy lawsuit tied to the Cambridge Analytica scandal.
