New Mexico judge cuts Meta privacy penalty to $25 billion
A New Mexico judge on Wednesday ordered Meta to pay $25 billion in civil penalties. The ruling follows a jury verdict finding that Facebook intentionally misled consumers regarding data privacy and user control.
First Judicial District Judge Frances Mathew presided over the case and issued a 20-page opinion. In September, a jury found Facebook liable for 26 false or misleading statements regarding user privacy.
How the jury calculated the original penalty
The jury arrived at its initial $219 billion figure by calculating violations under New Mexico’s Unfair Practices Act. Jurors assigned 2.1 million violations—matching the population of New Mexico—to each false statement that appeared in major news outlets. They also assigned 1.4 million violations to each statement made through direct company channels, reflecting the estimated number of New Mexicans with Facebook accounts in 2020.
The jury then applied the maximum penalty of $5,000 per violation permitted under the statute. The resulting $219 billion amount would have surpassed the largest civil settlement in United States history, which was the $206 billion Tobacco Master Settlement Agreement of 1998.
Source: Courthouse News Service
The judge’s reduction
During an October 1 hearing, Meta’s attorney asked for an 80% discount on the fine, calling the original amount astronomical and unconstitutional. Judge Mathew affirmed that the trial record supported levying the maximum $5,000 penalty per violation.
However, the judge reduced the overall civil penalty to $25 billion without detailing the specific calculation used to reach that reduced sum. State officials praised the outcome, while Meta expressed disappointment and vowed to appeal the decision.
What this means for ordinary people
The case highlights how state-level consumer protection statutes can be utilized to target misleading practices by major technology corporations. Consumers who use social media platforms may find that legal actions brought by state attorneys general lead to greater scrutiny over how their personal data and content are handled.
The source text does not outline specific steps, compensation claims, or deadlines for individual users to file claims under this judgment. Individuals concerned about their data privacy can review their current account settings or consult an attorney to understand their rights under local consumer protection laws.
Anyone evaluating how these ongoing legal developments might impact their personal privacy rights can benefit from consulting a qualified legal professional.
What this means: our conclusions
- ContextState laws pose major risks for tech giants
The case demonstrates that state consumer protection statutes can yield multibillion-dollar penalties against major technology companies for deceptive privacy practices.
- What to watchMeta plans an appeal
Meta's chief legal officer vowed to appeal the ruling, arguing that the enforcement approach threatens the ability to conduct business and acts as a tax on speech.
- ContextUnclear impact on individual consumer compensation
While the state secured a massive penalty, the source text does not detail a payout mechanism or claim process for individual users affected by the data practices.
- What to doReview your account privacy settings
Consumers may want to check their social media account settings and privacy controls to better manage how third parties access their personal data.
| Category | Details from Source |
|---|---|
| Original Jury Award | $219 billion based on millions of statutory violations |
| Reduced Penalty | $25 billion ordered by Judge Frances Mathew |
| Statutory Maximum | $5,000 per violation under New Mexico's Unfair Practices Act |
| Company Response | Vowed to appeal and argued the penalty acts as a tax on speech |
Source: Courthouse News Service
- $5 billion settlement justice.gov
- statement nmdoj.gov
This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 21, 2026.
Source: Courthouse News Service
New Mexico Judge Slashes Meta Penalty to $25 B for Data‑Privacy Misrepresentations
A New Mexico judge reduced a jury‑awarded $219 billion penalty against Meta to $25 billion, citing violations of the state’s Unfair Practices Act.
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