A New Mexico judge has ordered Meta to pay $25 billion to resolve claims it misled users about data protection and content moderation, stemming from the 2018 Cambridge Analytica scandal. This follows an earlier $17 billion multi-state settlement, which most other states accepted, but New Mexico pursued its own case and secured a much larger penalty. Meta says it will appeal, arguing the ruling amounts to a “tax on speech.”
The court found Meta responsible for millions of violations of New Mexico’s unfair practices law. While the multi-state settlement provided faster payouts and product changes, such as restrictions on teen usage, New Mexico’s approach delivered a far higher financial penalty. Legal experts say this outcome may encourage others with outstanding claims, including school districts and tribes, to continue their litigation.
States that settled can no longer pursue covered claims against Meta, but they may seek larger settlements from other tech firms. The ruling also highlights the shift toward state-level tech regulation, as federal action has stalled. The outcome in New Mexico could shape future negotiations and litigation strategies for both regulators and companies.
The District of Columbia is expected to be the next major test case, as it continues its own lawsuit against Meta. The result of Meta’s appeal and further state actions will be closely watched by the industry.
