Meta Platforms, Inc. (NASDAQ:META) could face a multibillion-dollar penalty in New Mexico after a jury found the Facebook parent misled users about data privacy, access and content policies.
New Mexico Seeks $40 Billion Meta Penalty
On Thursday, New Mexico asked a judge to order Meta to pay between $35 billion and $40 billion, Reuters reported.
This follows a September jury verdict that found the company violated state consumer protection laws more than 43 million times.
The lawsuit, filed in 2021, stemmed from the Cambridge Analytica scandal, in which the political consulting firm obtained personal information from as many as 87 million Facebook users through a third-party app without their consent.
Jurors reviewed 29 statements made by Meta and its executives and found 26 misleading.
Meta Calls $40 Billion Penalty ‘Astronomical’
New Mexico law allows penalties of up to $5,000 per violation.
State attorney Randi McGinn said the requested $35 billion to $40 billion would provide a meaningful penalty while avoiding due-process concerns.
“This court should speak,” McGinn said, arguing that money and Meta’s stock value would make the penalty consequential.
Meta attorney Matt Nicholson called the request an “astronomical penalty” and urged the judge to cap damages at $3.45 billion. Meta argued that the state did not prove consumers were actually misled and said it does not sell user data.
Judge to Decide Meta’s Final Penalty
Judge Francis Mathew, who presided over the trial in Santa Fe, will determine the final amount. He said he expects to issue a ruling later this month.
Price Action: On Thursday, Meta closed at $725.93, while the stock rose 0.12% to $726.77 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Meta ranks in the 80th percentile for Momentum, with positive short-, medium- and long-term price trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Creative Salim on Shutterstock.com
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