A judge imposes a massive penalty after a jury finds the tech giant misled consumers about Facebook data practices, in a case stemming from the Cambridge Analytica scandal.
SANTA FE, New Mexico, October 21, 2026 — Meta Platforms has been ordered to pay $25 billion to the state of New Mexico after a jury found that the company misled consumers about data privacy and its handling of harmful content on Facebook.
The ruling, issued Wednesday by Judge Francis Mathew, follows a jury verdict in September that found Meta had made misleading statements about its practices. New Mexico Attorney General Raúl Torrez described the decision as one of the largest single-state verdicts against the company in US history.
In his order, Mathew said the company’s conduct had persisted for years and was central to its business practices. Although the judge determined that state law could support penalties exceeding $219 billion, he reduced the award to $25 billion.
Meta did not immediately respond to a request for comment.
Cambridge Analytica Scandal at the Center of the Case
The lawsuit, filed by New Mexico in 2021, followed revelations that Cambridge Analytica, a political consulting firm, had obtained personal information from as many as 87 million Facebook users through a third-party application.
The firm used the information for voter profiling and political targeting, including work connected to Donald Trump’s successful 2016 presidential campaign. The data was obtained through an application developed by a researcher who had been permitted to operate on Facebook’s platform.
New Mexico accused Meta of misleading residents about who could access their personal information and how the company handled hate speech, misinformation and other harmful content.
The state also argued that Meta tolerated harmful material when doing so benefited its commercial interests.
Jurors found that 26 of 29 statements made by the company and its leadership on these issues were misleading. They determined that the conduct resulted in more than 43 million violations of New Mexico’s consumer protection laws.
Under state law, each violation can carry a penalty of up to $5,000. The resulting potential liability formed the basis of the state’s request for a substantial financial award.
State Sought Billions in Consumer Protection Penalties
During an October 1 hearing, lawyers representing New Mexico requested a penalty between $35 billion and $40 billion, arguing that the amount was justified by the jury’s findings and constitutional protections.
Meta, meanwhile, urged the judge to limit the penalties to $3.45 billion. The company argued that excessive fines could discourage businesses from operating in the state.
Meta also maintained that it did not sell users’ personal data and that New Mexico had failed to establish that consumers were actually misled.
Following Wednesday’s decision, Torrez said the ruling marked a turning point in efforts to hold major technology companies accountable and signaled that his office intended to continue protecting consumers.
The financial consequences, however, may depend on the outcome of further legal proceedings. Technology analyst Gil Luria of D.A. Davidson & Co. described the award as costly but said Meta’s enormous market value could limit the immediate effect on its overall valuation. He also noted that continued appeals could prolong the litigation.
Earlier New Mexico Verdicts Targeted Teen Safety
The $25 billion ruling is the second major jury verdict against Meta in New Mexico in 2026.
In March, a Santa Fe jury found the company misled users about the safety of young people on Facebook, Instagram and WhatsApp. That verdict resulted in $375 million in civil penalties.
Following a subsequent phase of the case, a judge ordered Meta in August to pay an additional $567 million into a New Mexico teen mental health fund and implement measures to protect young users on Facebook and Instagram in the state.
Separately, six other states settled lawsuits involving claims related to Cambridge Analytica and allegations that social media platforms harmed teen mental health. Those settlements formed part of a $17.1 billion multistate agreement reached by Meta in August, including $459.2 million allocated to the six states.
Implications for Big Tech and Consumer Privacy
The latest judgment adds to the legal and regulatory pressure facing major technology companies over consumer privacy, platform safety and corporate accountability.
New Mexico’s case illustrates how state consumer protection laws can expose companies to substantial financial penalties when courts find that their public statements or business practices violate those laws.
For Meta, the size of the award raises the stakes in an already extensive series of legal disputes. The company’s response and any subsequent appeals could determine how much of the penalty it ultimately has to pay.
For consumers, the case renews attention on how social media platforms collect, share and protect personal information—and on the responsibility companies bear when communicating their privacy practices to the public.
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