New Mexico Attorney General Seeks Up to $40 Billion in Penalties Against Meta for Data Privacy Violations

This case highlights the growing scrutiny on tech companies regarding data privacy and consumer protection.

• New Mexico Attorney General Raúl Torrez requested up to $40 billion in penalties against Meta following a jury verdict for misleading consumers about data privacy.
• A jury found Meta liable for approximately 43.9 million violations of the state's Unfair Practices Act related to deceptive data practices.
• Meta previously settled a multi-state lawsuit for $942 million but opted not to settle with New Mexico, which is pursuing its own independent litigation.

• The Cambridge Analytica scandal involved unauthorized data harvesting from millions of Facebook users, raising significant concerns about data privacy.
• New Mexico's lawsuit was initiated in 2021 under former Attorney General Hector Balderas, focusing on Meta's handling of user data and misleading statements.
• The state declined participation in a broader multi-state settlement in August 2026, choosing instead to pursue its own case, which has already yielded substantial financial penalties.

On October 2, 2026, New Mexico's Attorney General Raúl Torrez made a bold move by requesting a staggering $35 billion to $40 billion in civil penalties against Meta Platforms Inc. This request follows a jury verdict that found Meta liable for approximately 43.9 million willful violations of the state's Unfair Practices Act. The jury concluded that Meta had engaged in deceptive practices regarding data privacy, particularly in the context of the Cambridge Analytica scandal, which involved unauthorized data harvesting from millions of Facebook users.

The jury's decision is significant, as it underscores the legal accountability that tech companies face regarding their data practices. The requested penalties, which could amount to $5,000 per violation, reflect a growing trend among states to hold tech giants accountable for misleading consumers. This case is particularly noteworthy because New Mexico opted out of a broader multi-state settlement that resolved similar claims against Meta, indicating a strategic decision to pursue independent litigation for potentially greater financial and regulatory outcomes.

In a previous phase of litigation, New Mexico secured a total of $942 million in penalties from Meta, which included a $375 million jury award and a $567 million court-ordered abatement fund aimed at improving youth safety on the platform. The state has mandated reforms that require Meta to enhance protections for children on Facebook and Instagram for a period of five years. This independent approach has yielded results that exceed New Mexico's proportional share of the multi-state settlement, demonstrating the potential effectiveness of state-level litigation against large corporations.

Meta has indicated that it plans to appeal the judgments, contesting both the findings of liability and the scale of the potential penalties. This ongoing legal battle reflects the broader tensions between state regulators and tech companies, as states increasingly seek to assert their authority over data privacy and consumer protection issues. The outcome of this case could set a precedent for how similar lawsuits are handled in the future, influencing not only Meta but also other tech companies facing scrutiny over their data practices.

• Consumers: Users of social media platforms may see changes in data privacy practices and transparency.
• Tech Companies: Other tech firms may face increased scrutiny and potential litigation as states adopt similar approaches.
• Legal Professionals: Lawyers specializing in data privacy and consumer protection may see a rise in demand for their services.

• Meta's Appeal: The outcome of Meta's appeal will be crucial in determining the final penalties and any potential changes to their data practices.
• Legislative Changes: Watch for new state or federal legislation aimed at enhancing data privacy protections, which could arise from this case.
• Consumer Reactions: Increased awareness and concern among consumers regarding data privacy may lead to shifts in how they engage with social media platforms.