The essentials
A New Mexico judge ordered Meta to pay $25 billion over misleading Facebook privacy statements, and Meta plans to appeal.
A New Mexico judge ordered Meta to pay $25 billion over public statements about user privacy. The award was reached after the judge reduced a calculated statutory maximum of roughly $219.5 billion. The ruling, issued in Santa Fe, follows a jury finding that 26 of 29 Facebook public statements were misleading. The court also found that the deception of users was intentional.
The jury rejected claims that Facebook made false statements about removing harmful content. The case stems from a lawsuit New Mexico filed in 2021. As background, Cambridge Analytica obtained data from as many as 87 million Facebook users.
Interest on the award accrues at 15 percent annually until it is paid. Meta stated it will appeal the penalty. The company, based in Menlo Park, California, has a market value of $1.8 trillion, and its shares rose 2 percent after the ruling was announced.
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Court cites intentional deception and 26 misleading statements in ruling
The jury found 26 of 29 Facebook public statements misleading, and the court concluded that the deception of users was intentional. The judge calculated a statutory maximum of roughly $219.5 billion and reduced it to a $25 billion award. The jury did reject claims that Facebook made false statements about removing harmful content, a distinction that appears in the verdict's scope.
Meta vows appeal as shares rose 2 percent after ruling
Meta has stated it will appeal the $25 billion penalty, a process that remains ahead as the award carries 15 percent annual interest until paid. The company, valued at $1.8 trillion, saw its shares rise 2 percent after the ruling was announced. The case was filed by New Mexico in 2021, and the jury's rejection of the content-removal claims is part of the overall outcome.