New Mexico wants Meta to pay $40 billion in penalties for Cambridge Analytica scandal

New Mexico is seeking penalties between $35 billion and $40 billion from Meta, following a jury decision that sided with the state in its lawsuit over the Cambridge Analytica scandal. State authorities have asked a judge to order the company to pay this amount, according to Reuters. New Mexico originally filed the lawsuit against Meta in 2021, accusing the tech giant of misleading its users regarding its data privacy practices.

In late September, a New Mexico jury found Meta in violation of the state's Unfair Practices Act. Jurors concluded that Meta had misled residents about their privacy and how the company handles misinformation. The verdict indicated that the state could potentially seek up to $219 billion in penalties. The jury examined 29 statements made by Meta concerning the case and determined that 26 of them were misleading. Based on the number of Facebook users in New Mexico exposed to these statements, the jury identified 43 million violations of the state's consumer protection laws.

Randi McGinn, the state's attorney, emphasized that any penalties levied against Meta must be substantial enough to impact the company. "This court should speak to Meta in the only language it understands, which is money, and the value of its stock price," McGinn stated, expressing confidence that the requested amount would withstand an appeal. Conversely, Meta is requesting the court to cap the penalties at $3.45 billion, arguing that New Mexico failed to prove any of its residents were actually misled by its statements. The judge is expected to issue a decision on the matter later this month.

What to watch: The judge's decision on the penalty amount and Meta's potential appeal.

Editor's note: The draft accurately summarizes the legal dispute and the specific figures involved, maintaining the tone and content of the source.