Meta to pay New Mexico $25B in Cambridge Analytica case
What's the story
A New Mexico court has slapped Meta with a whopping $25 billion penalty in a data privacy case linked to the Cambridge Analytica scandal. The Santa Fe jury found the social media giant liable for misleading citizens about its user data protection and collection practices, as well as its efforts to curb harmful information on its platforms.
Violation details
Jury found Meta liable for over 43 million violations
In September, the jury found Meta liable for more than 43 million violations of New Mexico's unfair practices act. Each violation could incur a civil penalty of up to $5,000.
However, the final penalty was decided by a New Mexico judge.
The state initially sought $35 billion to $40 billion but settled on a reduced amount of $25 billion, according to court documents.
Information
Meta to appeal against September verdict
Meta, which has already announced its intention to appeal against the September verdict, has yet to comment on this latest penalty order. This is not the first time Meta has faced legal action over data privacy issues related to Cambridge Analytica.
Past settlements
Meta previously settled data privacy lawsuits
In 2022, Meta agreed to pay $725 million to settle a class-action lawsuit stemming from the Cambridge Analytica scandal.
The company also settled other data privacy lawsuits across the US as part of an August settlement of nearly $18 billion with a coalition of state attorneys general in separate federal case related to child safety and mental health.
However, New Mexico was not part of that settlement, which led to this trial over its own data privacy case against Meta.
Legal proceedings
New Mexico's Cambridge Analytica lawsuit was filed in 2021
The state's Cambridge Analytica-related lawsuit was first filed by former New Mexico AG Hector Balderas in 2021.
Current AG Raul Torrez oversaw the trial and also led his state's child-safety trial against Meta, which resulted in a March jury ruling that the social media company should pay $375 million for violating the state's unfair practices act.
A New Mexico judge later ordered Meta to pay $567 million into an abatement fund as part of a second phase of this case.