Judge orders Meta to pay $25B US for misleading consumers about data privacy

Facebook parent company Meta has been ordered to pay $25 billion US after a jury found it misled consumers about data privacy.

The New Mexico judge found that a penalty of more than $219 billion US was warranted, but reduced it

Thomson Reuters

· Posted: Oct 21, 2026 2:51 PM EDT | Last Updated: 13 minutes ago

Listen to this article

Estimated 4 minutes

The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.

A judge in New Mexico ordered Meta Platforms to pay $25 billion US (about $35 billion Cdn) on Wednesday after a jury found the company had misled consumers in a case arising from allegations that a political consulting firm involved in Donald Trump's 2016 presidential campaign obtained data from ‌millions of Facebook users without their consent.

"Facebook's wrongdoing — over the course of years and systematically broadcast to the public — goes to the heart of Facebook's core business practices," Judge Francis Mathew wrote in his order following the verdict.

Mathew found that a penalty of more than $219 billion US was warranted, based on state law, but he reduced the figure to $25 billion US.

A spokesperson for Meta did not immediately respond to a request for comment.

WATCH | Kids react to new restrictions coming to Meta in U.S.:

Kids react to the new restrictions coming to Meta in the U.S.

September 17|

Duration

2:18

Meta will be bringing restrictions to their social media platforms such as Facebook and Instagram. This applies to users under 18 in the U.S. The changes are part of Meta’s settlement agreement following a lawsuit brought forward by several American states. The lawsuit claimed the company designed their apps to make children addicted to them. Users can expect to see changes within the next six months. We asked kids in Toronto, Ontario, if they agree with some of the new restrictions.

The state's attorney general sued Meta in 2021 following revelations that Cambridge Analytica, a British political consulting firm, had harvested personal data from as many as 87 million Facebook users through a third-party app.

• Video

  Facebook's Cambridge Analytica problem hurts other developers

The state accused Meta of lying to Facebook users in New Mexico about who had access to their data, how the company handles hate speech and misinformation posted on the platform and other internal policies. The company knew that third parties had broad access to users' personal data, and it tolerated hate speech or other harmful content when it benefited the company's bottom line, the state said.

Resident misled about privacy

Jurors on Sept. 25 found that 26 of 29 statements made by the company and its leadership on those issues were misleading. They said the company had committed more than 43 million violations of New Mexico’s consumer protection laws, based on the number of Facebook users or New Mexico residents who were the audience for each misleading statement.

State law allows a penalty of up to $5,000 US ($7,024 Cdn) per violation, with the money directed to New Mexico's school system, New Mexico ⁠Attorney General Raúl Torrez told reporters after the verdict.

WATCH | Meta agrees to massive settlement over social media harms to children:

Meta agrees to $16.7B US settlement over social media harms to children

August 26|

Duration

3:17

Meta, which owns Instagram and Facebook, agreed to a $16.68-billion US settlement over claims brought by 29 states that it designed its social media platforms to harm children. Meta agreed to make app changes for underage users, including imposing daily usage limits and preventing access to age-restricted content

At a hearing on Oct. 1, Randi McGinn, a lawyer for New Mexico, asked Mathew to award the state between $35 billion and $40 billion US ($49 billion to $56 billion Cdn) saying that would be supported by the U.S. Constitution's protections on due process and the jury's verdict.

"This court should speak to Meta in the only language it understands, which is money, and the value of its stock price," McGinn said.

• Landmark verdict in New Mexico finds Meta violated state child safety laws

In court filings, Meta urged Mathew to cap the penalties at $3.45 billion US, saying a higher penalty ran the risk of scaring businesses out of the state. The company also said that the evidence showed that Meta does not sell user data and New Mexico did not prove that any consumer had actually been misled.

Two juries sided with state

The verdict was the second in six months by a Santa Fe jury in a lawsuit brought by the state of New Mexico against Meta Platforms.

In the first trial, which ended in March, a Santa Fe jury ​found Meta misled users ⁠about young users’ safety on its Facebook, Instagram and WhatsApp platforms, and ordered the company to pay $375 million US ($526 million Cdn) in civil penalties. After a second phase of that trial, a judge directed the company to pay $567 million US ($796 million Cdn) into a New Mexico fund for teen mental health and ordered Meta to implement measures to protect teen Facebook and Instagram users in New Mexico.

WATCH | Meta ordered to pay hundreds of millions in child safety suit:

Meta ordered to pay $567M US over child safety lawsuit

August 7|

Duration

4:22

A New Mexico judge has ordered Meta to pay $567 million US after finding the company created a public nuisance and misled consumers about the safety of its platforms for children. Meta says it will appeal the ruling.