19 days ago
TechCrunch Oct 21, 2026

Meta ordered to pay $25B in case related to Cambridge Analytica scandal

Meta has been ordered to pay a staggering $25 billion to the state of New Mexico following a recent trial related to the Cambridge Analytica data scandal. This decision comes after a jury found that the company behind Facebook and Instagram engaged in 43 million violations of New Mexico’s consumer protection laws, each carrying a $5,000 penalty. The trial focused on Meta’s deceptive data privacy practices, including issues with a third-party app connected to the Cambridge Analytica breach, as well as how the company managed misinformation on its platforms.

The Cambridge Analytica scandal unraveled years ago but continues to have massive financial repercussions for Meta. Cambridge Analytica, a British defense contractor's offshoot known for its political influence work, was deeply involved in controversial data practices and was notably linked to the 2016 Trump campaign. The New Mexico Attorney General Raúl Torrez emphasized the significance of the payout, suggesting the funds could support public projects like building schools for decades to come.

Meta’s chief legal officer, C.J. Mahoney, responded to the ruling by criticizing the approach of New Mexico’s enforcement, arguing it essentially creates a tax on speech and sets new, burdensome rules for online expression. Meta has stated its intention to appeal the decision, asserting confidence in overcoming the ruling while continuing to maintain a platform that supports users and businesses across the United States.

This landmark penalty marks one of the largest financial punishments related to the social media giant’s handling of user data and privacy violations. The outcome further underscores the ongoing fallout from the Cambridge Analytica incident and raises questions about how companies must navigate evolving regulatory landscapes regarding privacy and misinformation on digital platforms.

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