New Mexico Seeks Up to $40 Billion in Meta Penalties Over Cambridge Analytica Scandal

New Mexico is seeking significant penalties from Meta, with state authorities asking a judge to order the company to pay between $35 billion and $40 billion. This demand follows a late September jury decision that sided with the government in its lawsuit concerning the Cambridge Analytica scandal. The state's attorney, Randi McGinn, emphasized that the penalties must be substantial enough to have a real impact on the company, stating, "This court should speak to Meta in the only language it understands, which is money, and the value of its stock price."

The lawsuit, originally filed by New Mexico in 2021, accused Meta of misleading its users about its data privacy practices. The case stems from the Cambridge Analytica scandal, where the British political data firm harvested information from over 50 million Facebook profiles without consent for political ad campaigns. Jurors found that Meta had violated New Mexico's Unfair Practices Act and misled residents regarding their privacy and the company's handling of misinformation.

Based on the number of Facebook users in New Mexico exposed to these statements, the jury concluded that Meta had committed 43 million violations of the state's consumer protection laws. While the jury's verdict could have allowed the state to seek as much as $219 billion, authorities have focused on the $35 billion to $40 billion range, which McGinn believes will withstand appeals. In response, Meta is requesting the court to cap penalties at $3.45 billion, arguing that New Mexico failed to prove any residents were actually misled by its statements.

A judge is expected to issue a decision on the matter later this month. The outcome will set a precedent for how tech giants are held accountable for data privacy practices and misinformation.

What to watch: The judge's decision later this month and any subsequent appeals from either party.

Editor's note: Comprehensive coverage of the Engadget report, accurately capturing all key figures, quotes, and background details from the source text.