Meta’s $25 Billion New Mexico Ruling Could Shift State Lawsuits

A New Mexico judge ordered Meta to pay $25 billion over claims that it misled users about data protection, misinformation and hate speech. The claims stem from the 2018 Cambridge Analytica scandal and related incidents. A jury found Meta had violated New Mexico’s unfair practices law millions of times.

The ruling could influence how states and other plaintiffs pursue similar cases, but Meta says it will appeal. Chief legal officer C.J. Mahoney said the company is “confident we will prevail on appeal” and described the lawsuit as an attempt to impose “a tax on speech.”

Many other states settled covered claims for $459 million as part of a broader kids online safety settlement. That agreement offered a more certain, faster payout, paid by Meta over 10 years, and included product commitments such as restrictions on teen usage. Advocates said implementing those commitments promptly could help prevent further harm to children. States may also have had different laws or evidence.

Stanford researcher Daphne Keller said the New Mexico outcome could encourage plaintiffs with unresolved claims to keep litigating or seek larger settlements. Colorado Law associate professor Blake Reid said state-level cases could produce different results because states have different resources, politics and litigation capabilities. Whether the ruling changes others’ strategies may depend on the outcome of Meta’s appeal and further cases.