Meta Ordered to Pay $25 Billion in New Mexico Data Privacy Case
A Record-Breaking Penalty
“Today’s result makes clear that no corporation is too powerful to be held accountable,” New Mexico state Attorney General Raúl Torrez said after a state judge ordered Meta to pay a $25 billion penalty for misleading users about data privacy protections.
The penalty, handed down on Wednesday by a New Mexico judge, stands as one of the largest financial judgments ever levied against Meta or any other company. The decision follows a September jury verdict finding that the company committed 43 million violations of state consumer protection laws by making false statements regarding data privacy, misinformation, and hate speech.
Origins of the Litigation
The litigation traces back to a 2021 lawsuit filed by former New Mexico Attorney General Hector Balderas. The state brought the action after revelations surfaced that a U.K. political consulting firm harvested millions of Facebook users’ personal data without consent.
New Mexico District Court Judge Francis Mathew justified the maximum penalty by citing the scale, duration, and systematic nature of the violations. Judge Mathew pointed to the involvement of senior Facebook leadership and the breadth of New Mexico audiences reached. The judge also ordered interest to accrue at 15% annually until the penalty is paid in full.
Flawed Privacy Controls
Court documents revealed that Facebook’s privacy settings failed to provide users with meaningful control over their personal information. The judgment also found that the social media platform deliberately withheld notifications from users when an app misused their data.
Meta Plans Appeal Against New Mexico Enforcement
Meta strongly criticized the decision and confirmed plans to launch an appeal.
C.J. Mahoney, Meta’s chief legal officer, argued in a statement that the enforcement approach makes commercial operations in New Mexico nearly impossible. Mahoney asserted that the lawsuit attempts to impose a tax on speech to enforce new rules for what people can say online.
Mounting Legal Liabilities
The judgment arrives as Meta faces severe legal setbacks over consumer safety and data governance. In August, the company agreed to pay $17 billion to resolve a child safety lawsuit brought by California and other states.
A New Mexico court ordered Meta earlier this year to pay $942 million and make the platform safer following allegations that the platform enabled mental health harms and sexual exploitation among young users.
Financial Impact on the Bottom Line
Financial reports indicate these legal battles are directly impacting the corporation’s bottom line. Meta reported third-quarter revenue of $64 billion, beating Wall Street expectations, but logged roughly $10 billion in legal expenses tied to the August agreement to resolve the case over the mental health of young people. That expenditure pushed operating income down 37% compared to the previous year, even as the company generated roughly $200 billion in annual revenue and $60 billion in net income in 2025.