Meta could be ordered to pay up to $40 billion (£30.3 billion) in civil penalties after a New Mexico jury found Facebook responsible for nearly 44 million consumer protection violations involving misleading statements about privacy and other platform policies.
State lawyers requested between $35 billion (£26.5 billion) and $40 billion (£30.3 billion) at a hearing on 1 October 2026, following a verdict delivered in Santa Fe on 25 September.
The case, which emerged from the Cambridge Analytica scandal, examined Facebook's assurances about how it collected, protected and shared users' personal information. Jurors also considered the company's statements about tackling misinformation and hate speech.
According to Reuters, the jury found 26 of 29 statements examined during the trial to be misleading. However, no $40 billion (£30.3 billion) penalty has been imposed. Judge Francis Mathew must determine the amount, while Meta argues that the state's proposed penalty is excessive.
Facebook Found Responsible for Nearly 44 Million Violations
The lawsuit was filed in 2021 by then-New Mexico Attorney General Hector Balderas following the Cambridge Analytica scandal. His successor, Raúl Torrez, has continued the state's legal action against Facebook.
According to the New Mexico Department of Justice, jurors found Facebook responsible for 43,899,725 violations of the state's Unfair Practices Act. The figure was calculated using the number of people in the audiences for statements the jury found misleading. It does not represent nearly 44 million unique consumers or a finding that every person suffered individual harm.
The jury found that Facebook made deceptive statements about users' control over their personal information. These included assurances about data sharing, advertisers' access to personal information and whether the company bought or sold user data. Meta maintains that it does not sell users' personal information.
The findings extended beyond privacy. Jurors also found misleading statements about Facebook's handling of misinformation and hate speech, including representations about its policies and how they were applied.
Why Meta Could Face a $40 Billion Penalty
New Mexico law allows civil penalties of up to $5,000 (£3,785) for each wilful violation of the Unfair Practices Act. Applying that maximum to all 43,899,725 violations would produce a theoretical penalty of approximately $219.5 billion, although the court is not required to impose the maximum.
At the 1 October hearing, state lawyers instead requested between $35 billion and $40 billion. According to Reuters, the state's legal team acknowledged that imposing the full statutory maximum could raise constitutional due process concerns. It argued that a smaller but substantial penalty would deter future misconduct.
Meta disputes the proposed amount. Its lawyers have urged the court to cap penalties at $3.45 billion (£2.61 billion), arguing that the state's demand is disproportionate and constitutionally excessive. In court filings, the company also argued that New Mexico had failed to prove any consumer was actually misled and maintained that the statements presented during the trial had been taken out of context.
Judge Francis Mathew must now determine the financial penalty. The September verdict established liability but did not set the amount payable. New Mexico is also seeking court-ordered measures to prevent similar practices. At the October hearing, Mathew said he expected to issue a ruling later that month.
Cambridge Analytica Scandal Returns to Haunt Facebook
The lawsuit traces back to the Cambridge Analytica scandal, which became public in 2018 and raised concerns about Facebook's handling of personal information.
The British political consulting firm obtained personal data relating to as many as 87 million Facebook users through a third-party application without their consent. The revelations triggered investigations into Facebook's privacy practices and raised questions about users' control over access to their information.
New Mexico pursued its case independently while other jurisdictions resolved related privacy claims. Its lawsuit examined Facebook's representations about third-party access to personal data and its promises to investigate applications suspected of misusing user information.
The jury also found deceptive statements relating to Facebook's response to third-party applications following the scandal, including representations concerning investigations and protections surrounding users' information.
Will Facebook Users Receive Any Compensation?
The proposed $40 billion (£30.3 billion) penalty would not automatically result in payments to individual Facebook users. New Mexico is seeking civil penalties for violations of consumer protection law rather than compensation awarded directly to affected account holders.
The proceedings are separate from Facebook's earlier $725 million (£548.5 million) privacy settlement, which resolved a US class-action lawsuit involving allegations that Cambridge Analytica and other third parties improperly accessed users' personal information.
Meta is also involved in a separate New Mexico child-safety case. In August 2026, Judge Bryan Biedscheid ordered the company to pay $567 million (£429 million) into a fund intended to address harms associated with Facebook and Instagram. Combined with a $375 million (£284 million) civil penalty imposed after an earlier jury verdict in that case, the orders totalled $942 million (£713 million). Meta has disputed the rulings and said it intends to appeal.
That child-safety case concerns different allegations and is unrelated to the Cambridge Analytica-related verdict. For Meta, the immediate question in the current case is how much Judge Mathew will order it to pay following the September verdict.
The eventual ruling could also contribute to a broader legal debate over how large civil penalties should be when technology companies are found to have violated consumer protection laws.
