NM Jury Finds Facebook Liable for Massive Privacy Violations, $40B Penalty Looms
A New Mexico jury ruled Facebook liable for 43.9 million privacy violations, risking up to $40 billion in fines.
Why it matters: This landmark verdict signals heightened legal and financial risks for tech firms handling user data, impacting in-house legal and compliance teams globally.
- September 25, 2026: NM jury finds Facebook liable for nearly 44 million violations of the Unfair Practices Act.
- Violations relate to deceptive data privacy statements and misinformation linked to the Cambridge Analytica scandal involving 87 million users.
- State seeks $35B to $40B in penalties, about 20% of statutory maximum fines; judge to determine final amount later this month.
- Meta disputes verdict, claiming updated policies and contesting distortion of its record.
On September 25, 2026, a New Mexico jury found Facebook liable for 43,899,725 violations of the state's Unfair Practices Act, tied to deceptive statements about data privacy and the spread of misinformation and hate speech. These violations connected directly to the Cambridge Analytica scandal, where data from approximately 87 million Facebook users was misused for political purposes, according to AP News.
New Mexico Attorney General Raúl Torrez said, "For years, Facebook operated as if the rules that apply to everyone else didn’t apply to them. Today, a jury of New Mexicans said otherwise." The state is pursuing penalties ranging from $35 billion to $40 billion — about 20% of the potential maximum fines allowed under state law — as detailed by Investing.com.
In response, Meta Platforms, Inc., Facebook's parent company, stated, "We disagree with the verdict and will continue to defend ourselves against efforts to distort our record." The company notes it has since updated its privacy policies to address concerns.
Judge Francis Mathew is scheduled to decide the final penalty amount later this month. As attorney Randi McGinn representing New Mexico said, "This court should speak to Meta in the only language it understands, which is money, and the value of its stock price."
This case represents a pivotal moment for technology companies' accountability regarding data privacy violations. Legal, compliance, and regulatory teams nationwide should prepare for potentially expanded financial liabilities tied to user data protection.
By the numbers:
- 43,899,725 — violations of New Mexico's Unfair Practices Act by Facebook
- Up to $5,000 — potential fine per violation
- $35B to $40B — penalties New Mexico seeks from Meta Platforms, Inc.
- 87 million — users' data involved in Cambridge Analytica scandal
Yes, but: Meta disputes the verdict, stating it has improved privacy policies and denies distortion of its record.
What's next: Judge Francis Mathew is expected to rule on the final penalty amount later this month, which could set historical precedent for privacy-related fines.