Meta faces a $25 billion penalty in New Mexico for misleading users about data practices during the Cambridge Analytica scandal.
Federal court orders Meta to pay $25 billion
A federal court in New Mexico ruled on October 21, 2026, that Meta must pay $25 billion in penalties for misleading users about how it collected and protected their personal data during the Cambridge Analytica scandal.Ruling follows extensive trial
The decision came after a trial that reviewed over 43 million alleged violations identified by a jury. This followed years of legal battles and intense scrutiny of Meta’s data practices.New Mexico pursued trial instead of settlement
Unlike other states that reached a $18 billion settlement in August 2026, New Mexico chose to take the case to trial. The lawsuit was filed in 2021, and the state insisted on a full judicial process.Jury found Meta intentionally deceptive
A jury in Santa Fe concluded that Meta’s executives intentionally misled users about the company’s data practices. The court highlighted that these misleading statements were repeated and continued for a long period.Court reviewed public company statements
Jurors examined numerous public statements made by Meta regarding user privacy and content moderation. They found that most of these statements were deceptive and did not accurately reflect the company’s practices.Scandal began with data collection app
The Cambridge Analytica scandal originated in the late 2010s when a personality quiz app on Facebook collected data from about 87 million users, far exceeding the intended scope. This data was later used for political advertising, sparking widespread concern over privacy and data misuse.