Meta Platforms, the parent company of Facebook and Instagram, has been ordered to pay $25 billion to the US state of New Mexico over allegations of misleading users about data privacy.
The ruling, issued by a New Mexico judge on October 21, 2026, follows a jury verdict that found the company responsible for more than 43 million violations of state consumer protection laws.
The case centres on Facebook’s handling of users’ personal information and claims about how effectively the platform protected their data.
Cambridge Analytica Scandal Behind the Case
The lawsuit dates back to the Cambridge Analytica scandal, which emerged publicly in 2018. The British political consulting firm obtained personal information from as many as 87 million Facebook users through a third-party application.
The data was reportedly collected without users’ informed consent and used to build profiles for political targeting during the 2016 US presidential election.
New Mexico filed its lawsuit in 2021, accusing Meta of misleading users about third-party access to their information and the company’s privacy safeguards.
Jurors found that Meta had made 26 misleading statements concerning privacy protections and other platform practices. The judge subsequently imposed the $25 billion penalty.
Meta Plans to Challenge the Ruling
Meta has rejected the decision and announced plans to appeal. The company argues that the ruling unfairly restricts online speech and imposes an excessive financial penalty.
The judge reportedly considered penalties exceeding $219 billion under state law before reducing the amount to $25 billion.
The outcome remains subject to further legal proceedings, meaning the final financial consequences could change following an appeal.
Growing Legal Pressure on Big Tech
The decision adds to Meta’s mounting legal challenges over privacy, platform safety and the protection of young users.
It also highlights growing scrutiny of how technology companies collect, store and share personal information.
For social media users, the case underscores the importance of understanding privacy settings and reviewing which third-party applications can access account information.
Although Meta continues to contest the ruling, the case represents a significant development in the ongoing debate over corporate accountability and digital privacy.
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