Meta Platforms Inc. has been ordered to pay a penalty of $25 billion following a jury verdict in Santa Fe, New Mexico. The court determined that the company misled users regarding data protection and usage practices. The case stems from activities dating back ten years, including the Cambridge Analytica scandal.
The jury concluded that Meta committed 43 million violations of the state's unfair practices act. While the initial award was calculated at $219.5 billion based on a potential penalty of $5,000 per violation, Judge Francis Mathew reduced the final amount to $25 billion. The penalty will accrue an additional 15% annually if not paid in full.
The company faces ongoing legal challenges regarding child safety, privacy, and social media addiction. In August, Meta reached a separate $17.1 billion settlement with multiple U.S. states over product addiction claims. Despite these legal costs, the company reported a 26% revenue increase to $64.6 billion in its latest quarter.
Meta's chief legal officer, C.J. Mahoney, stated that the company intends to appeal the ruling. Mahoney argued that the decision and the enforcement approach by the New Mexico Attorney General create significant obstacles for conducting business within the state.
