r/InterstellarKinetics • u/InterstellarKinetics • 4h ago
FINANCIAL FRONTIERS BREAKING: Meta Has Been Ordered To Pay $25 Billion In New Mexico Cambridge Analytica Privacy Case, After Jury Finds More Than 43 Million Violations, As The Judge Imposes 15% Annual Interest & The Company Says It Expects To Prevail On Appeal 🏛️
A New Mexico court ordered Meta to pay $25 billion in penalties Wednesday in a data privacy case stemming from the Cambridge Analytica scandal, according to the article. The order follows a September jury verdict finding that the company misled New Mexico residents about how it collects and safeguards user data and prevents harmful information from flourishing on its services. Jurors found more than 43 million violations of the state’s Unfair Practices Act, which allows civil penalties of up to $5,000 per violation. District Court Judge Francis Mathew determined the final penalty, reducing the $219.5 billion amount identified in the filing to $25 billion. He also ordered interest to accrue at 15% annually until the penalty is paid in full.
Mathew cited the number of willful violations, the duration and repetition of the conduct, senior Facebook leadership’s involvement, and what he described as the intentional and systematic nature of the company’s repeated misstatements. He also found that “Facebook did not conduct the comprehensive investigation that it promised” after the Cambridge Analytica revelations. According to the filing, pressure from senior executives to contain costs, insufficient enforcement resources, inadequate investigative techniques, and a desire to avoid setting precedents for future investigations contributed to a “willfully ineffective” internal examination. New Mexico Attorney General Raúl Torrez welcomed the order, saying powerful technology companies had operated for too long as though their size and influence placed them beyond the law. “This penalty order demonstrates that those violations carry real consequences,” he said.
Meta’s chief legal officer, C.J. Mahoney, criticized the decision and said the company was confident it would prevail on appeal. “This ruling, and the Attorney General’s approach to this enforcement, makes it all but impossible to do business in the state of New Mexico,” he said, characterizing the lawsuit as an effort to impose “a tax on speech” and new rules for online expression. Former New Mexico Attorney General Hector Balderas filed the case in 2021, and Torrez oversaw the trial. The underlying Cambridge Analytica scandal emerged in 2018 and involved allegations that the political consulting firm improperly accessed information belonging to 87 million Facebook users. Meta previously agreed to a $725 million settlement in a related class action in 2022, but New Mexico’s case continued separately.