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Judge orders Meta to pay New Mexico $25B over misleading Facebook data-privacy claims

Published
Score
19

Why it matters

A New Mexico judge imposed a $25 billion civil penalty on Meta on October 21, 2026, after a jury found in September that the company committed more than 43 million violations of the state's Unfair Practices Act. The case grows out of the Cambridge Analytica scandal, in which a third-party personality quiz harvested data from roughly 87 million profiles and sold it to a political consulting firm. The jury found that Meta's most senior leadership, including CEO Mark Zuckerberg and former COO Sheryl Sandberg, misrepresented the company's data privacy policies. The judge calculated the maximum statutory penalty at more than $219 billion before reducing the judgment to $25 billion, plus 15% post-judgment interest. Meta's lawyers had argued the award should be no more than $3.4 billion. Meta says it will appeal. Attorney General Raúl Torrez called the verdict "one of the largest, if not the single largest state verdict against a company in American history." Separately, Senators Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) wrote to Google CEO Sundar Pichai, warning that the company's expansion of AI tools in schools could harm students' learning and wellbeing. Their letter cites a Wall Street Journal investigation based on more than 60 interviews and asks Google to respond by November 2.

The court has not yet ruled on injunctive relief, so the operational changes Meta must make remain unset. Details of Meta's appeal, including its timing and grounds, are not yet public. Google has not responded to the senators, and its position so far is that teachers worldwide use its technology because it solves real classroom problems and improves learning outcomes.

The $25 billion penalty is more than five times Meta's $5 billion FTC settlement in 2019, and it ranks among the largest corporate penalties in U.S. history tied to consumer data practices. Attorneys advising companies that handle personal data should track the injunctive relief ruling and the appeal, since both could shape how state attorneys general pursue privacy claims under consumer protection statutes. The timing also matters because Meta is expanding its AI products. On the Google side, watch whether the company answers the senators by November 2 and whether more school districts restrict classroom AI use amid growing concern over screen time and student AI use.

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