Meta is facing approximately $42 billion in recent legal penalties and settlements. On October 21, 2026, a New Mexico judge ordered the company to pay a $25 billion civil penalty for violating the state’s Unfair Practices Act. The ruling is based on more than 43 million individual violations, with the penalty accruing 15% annual interest until payment is made.
The New Mexico case originated from a 2021 lawsuit regarding user data privacy and public statements made during the Cambridge Analytica scandal. A jury found 26 out of 29 reviewed public statements by Meta to be misleading. The company has announced plans to appeal the decision, citing concerns that the enforcement methods could threaten its business viability.
Additionally, in August 2026, Meta reached a multistate settlement of up to $18 billion with 47 states and territories concerning the design of Instagram and Facebook and their impact on teenagers. Separately, New Mexico secured nearly $1 billion in verdicts related to youth harm. Meta previously settled with the Federal Trade Commission for $5 billion in 2019.
