New Mexico asked a judge to order Meta Platforms to pay between $35 billion and $40 billion in penalties for alleged misconduct. A jury determined that Meta misled consumers concerning the privacy of their data on Facebook.
The lawsuit, which was filed in 2021, concerned data taken from up to 87 million Facebook users by a third-party application without consent. The jury returned its verdict on 25 September.
Judge Francis Mathew will decide the final financial penalties that Meta must pay. The state accused Meta of providing false information to Facebook users in Mexico regarding data access, handling of hate speech, and misinformation policies.
Furthermore, the state alleged that Meta was aware third parties had extensive access to user data and permitted harmful content for profit. Jurors found that 26 out of 29 statements made by Meta and its leadership were misleading.
Attorneys representing Meta argued that the statements presented were merely selected excerpts, and that Meta admitted its handling of misinformation or privacy issues was imperfect. State law permits the judge to impose a fine on Meta up to $5,000 for each violation.
Randi McGinn stated that applying the full $5,000 penalty would result in a penalty too large under the US Constitution’s due process protections. McGinn asserted that the figure of $35 billion to $40 billion would affect the stock price while still adhering to due process.
Matt Nicholson called the state's request an "astronomical penalty that would obviously violate a host of constitutional provisions." Meta countered by arguing that evidence shows it does not sell user data and that Mexico failed to prove any consumer was misled.
The judge is expected to issue a ruling later this month.
Judge Francis Mathew stated, "They have to accept the consequences of their decision to go to trial, do they not?"
Judge Francis Mathew
