A New Mexico judge has ordered Meta Platforms to pay $25 billion after a jury found that the technology company misled consumers about how Facebook handled personal data and content moderation, in a case linked to the Cambridge Analytica scandal.
Meta, the parent company of Facebook, Instagram and WhatsApp, faces one of the largest financial penalties imposed on a company by a US state following a ruling by District Judge Francis Mathew on Wednesday, October 21, 2026.
The judgment followed a September jury verdict that found Meta liable for more than 43 million violations of New Mexico’s consumer protection laws. Jurors concluded that 26 of 29 statements made by the company and its leadership about data privacy and content moderation were misleading.
The case centred on allegations that Facebook misrepresented users’ control over their personal information, including who could access their data through third-party applications.
New Mexico prosecutors also argued that the company allowed harmful content, including hate speech and misinformation, to spread when doing so benefited its commercial interests.
Judge Mathew said the company’s conduct went to the heart of its business practices. The court calculated that the potential penalty under state law exceeded $219 billion but reduced the amount to $25 billion.
Meta has said it intends to appeal the verdict, setting up a further legal battle over the scale of the penalty and the state’s authority to impose it.
Cambridge Analytica scandal returns to haunt Meta
The lawsuit, filed in 2021, followed revelations that Cambridge Analytica, a now-defunct British political consulting firm, had obtained personal data from as many as 87 million Facebook users through a third-party application without their consent.
The information was used to develop targeted political advertisements, including for clients associated with Donald Trump’s 2016 presidential campaign.
The scandal, which became public in 2018, raised global concerns about Facebook’s privacy safeguards and the ability of outside developers to access information belonging to platform users.
New Mexico’s lawsuit alleged that Meta misled residents about how their information could be accessed and used. The state also challenged the company’s public statements about its handling of harmful content, arguing that its practices did not match the assurances given to users.
Meta disputed the state’s claims in the court filings. The company argued that it did not sell users’ personal data and that New Mexico had not demonstrated that consumers were actually misled. Its lawyers also warned that a penalty substantially above $3.45 billion would be excessive and could discourage businesses from operating in the state.
C.J. Mahoney, Meta’s chief legal officer, said the company was confident it would prevail on appeal, arguing that the state’s approach could make it difficult to conduct business in New Mexico and raised concerns about restrictions on online speech.
Billions of dollars at stake for education
Under New Mexico law, penalties for violations of consumer protection legislation can reach $5,000 per violation.
Raul Torrez, State Attorney General, said the money awarded in the case would go towards the state’s education system.
The scale of the judgment reflects the jury’s decision to count the alleged violations across the audience reached by Meta’s misleading statements, rather than treating the case as a single breach of privacy. The court calculated a potential penalty exceeding $219 billion before reducing it to $25 billion.
The case is also Meta’s second major legal defeat in New Mexico in six months. In March 2026, a jury found the company liable for misleading users about young people’s safety across Facebook, Instagram and WhatsApp, resulting in $375 million in civil penalties.
A judge subsequently ordered a further $567 million payment into a state fund for teen mental health and imposed additional protections for young users.
The latest ruling adds to the legal and regulatory pressure on major technology platforms over data protection, online safety and the accuracy of their public claims.
For Meta, the immediate issue is whether the $25 billion penalty will survive an appeal. More broadly, the case mirrors the financial risks technology companies face when courts find that their assurances about user privacy and platform safety do not align with their practices.
The $25 billion award is a court-ordered penalty, but the final amount Meta must pay could change through the appeals process.
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Folake Balogun is a technology journalist covering Africa’s digital economy, with a focus on startups, fintechs, venture capital, artificial intelligence, and emerging technologies. Her work explores the intersection of technology, business, and society, highlighting how innovation is reshaping industries and everyday life across Africa and global markets. She translates complex trends into insightful and impactful stories for a wider audience.
