Meta Ordered to Pay $25 Billion for Data Privacy Violations
A New Mexico court has mandated Meta to pay a hefty penalty following a long-standing legal dispute over data privacy issues linked to the Cambridge Analytica scandal.
Meta faces a $25 billion penalty for over 43 million violations of the New Mexico Unfair Practices Act.
The court's ruling highlighted Meta's failure to uphold commitments made after the 2018 Cambridge Analytica revelations.
Judge Mathew emphasized the systematic nature of Meta's violations, justifying the maximum penalty allowed.
In a significant legal development, a New Mexico state court has ordered Meta, the parent company of Facebook, to pay a staggering $25 billion in penalties. This ruling stems from a protracted legal battle related to the infamous Cambridge Analytica data privacy scandal that dates back nearly eight years. The judgment was disclosed in a court filing on October 21, following a jury's verdict in September that found Meta liable for misleading New Mexico residents about its data collection and protection practices.
The jury determined that Meta had committed over 43 million violations of the New Mexico Unfair Practices Act, with each violation carrying a potential civil fine of up to $5,000. However, the final penalty amount was left to the discretion of the court. Initially, the state sought $219.5 billion, but the court ultimately settled on the $25 billion figure. Judge Francis Mathew, presiding over the case, criticized Meta's past actions and internal practices, asserting that the severity of the violations warranted the maximum penalty.
Judge Mathew's ruling underscored the extraordinary nature of the violations, citing factors such as the duration of the misconduct, the involvement of senior leadership, and the widespread impact on New Mexico residents. He stated, "The extraordinary number of willful violations found by the jury... support the highest level of penalty allowed by the New Mexico Unfair Practices Act."
Additionally, the judge mandated that the penalty would accrue interest at an annual rate of 15% until fully paid. The court's decision pointed out that Meta had failed to fulfill its public commitments made after the 2018 revelations regarding Cambridge Analytica, where data from approximately 87 million users was improperly accessed. Judge Mathew noted that Meta did not conduct the thorough investigation it had promised in the aftermath of the scandal.
Previously, Meta sought to resolve litigation related to the Cambridge Analytica scandal on a national scale. In August, the company reached a $17 billion settlement with a coalition of state attorneys general concerning child safety and mental health issues. However, New Mexico opted out of that settlement, leading to the independent lawsuit initiated by former Attorney General Hector Balderas in 2021, which was carried forward by current Attorney General Raúl Torrez to its conclusion in court.
