A New Mexico judge has ordered Meta to pay $25 billion following a legal dispute over the company's handling of user data and misinformation, specifically linked to the 2018 Cambridge Analytica scandal. The court found that Meta violated state unfair practices laws by misleading users regarding data protection and content moderation.
This ruling significantly exceeds the $17 billion multi-state settlement reached earlier this summer, which included a $459 million payment related to kids' online safety. Meta’s chief legal officer, C.J. Mahoney, stated the company intends to appeal the decision, characterizing the lawsuit as an attempt to impose a tax on speech.
The outcome has prompted discussions among legal experts regarding the strategy of state attorneys general. While the previous multi-state settlement provided immediate product commitments and expedited payments over 10 years, the New Mexico ruling may encourage other plaintiffs, including school districts and individuals, to pursue aggressive litigation.
The District of Columbia remains a key jurisdiction to watch, as it did not join the earlier settlement and continues to pursue its own claims against Meta. Legal analysts note that while not every case will result in such high payouts, the potential for significant damages could influence future settlement negotiations for Meta and other platforms like TikTok, YouTube, and Snap.
