A New Mexico judge ordered Meta to pay $25bn after a two-week trial found the company had repeatedly misled the public about how it handled Facebook user data. The ruling, issued Wednesday, marks the largest penalty ever imposed on the tech giant.
Judge Francis Mathew concluded that Meta’s misrepresentations about data use and sharing were "willful" and spanned more than 11 years, from 2010 to 2021. Communications between senior executives, including Mark Zuckerberg, were described as "designed to mislead the public."
The lawsuit stemmed from New Mexico’s investigation into the Cambridge Analytica scandal, where data from millions of Facebook users was used for political consulting, including efforts tied to the 2016 U.S. presidential election. The state also accused Meta of downplaying risks of hate speech and failing to enforce content policies.
A jury determined Meta violated state laws over 40 million times, affecting roughly two million residents. The court found the company intentionally misled the public about data-sharing practices and content moderation policies.
Meta’s head lawyer, CJ Mahoney, called the ruling "all but impossible to do business in New Mexico" and announced plans to appeal. The company disputes the findings, arguing the case sets a dangerous precedent for regulating online speech.
The fine equals roughly one quarter of Meta’s quarterly profits. While the court initially calculated penalties at $219bn based on thousands of violations, the final amount was reduced to $25bn. This is not Meta’s first data-related penalty; the U.S. Federal Trade Commission previously fined the company $5bn in 2019.
New Mexico has pursued multiple actions against Meta this year, including a nearly $1bn penalty for misleading claims about child safety on its platforms. The presiding judge compared Meta’s impact to that of an industrial polluter, citing "psychological harm and sexual exploitation of children."
Despite the legal challenges, Meta continues to invest heavily in artificial intelligence. CEO Mark Zuckerberg stated that its AI tool, Muse, now serves 10 million users and will be scaled to billions. The company plans to spend between $135bn and $145bn this year on AI infrastructure, contributing to a reported negative cash flow of over $2bn — the first such deficit in Meta’s 14-year public market history.
In the third quarter, Meta’s revenue rose 26% year-over-year to $64.5bn, with profits tripling to $9.8bn. CFO Susan Li announced a new stock split to provide greater funding flexibility, citing ongoing AI-related expenses.
The case underscores growing regulatory scrutiny of major tech firms’ data practices and raises questions about accountability in the digital economy.

