Meta settles multi-billion-dollar lawsuit for harming, deceiving users
Unfirable CEO Mark Zuckerberg's company, Meta, will pay $25 billion for deceiving users in its privacy policy.
Meta, the tech giant led by Mark Zuckerberg, has reached a settlement in a multi-billion dollar lawsuit involving user harm and deception. The New Mexico court, which has been actively suing Meta for consumer protection violations, played a significant role in this case. The 2021 lawsuit, based on the 2018 Cambridge Analytica scandal, led to a $25 billion settlement - one of the largest penalties in tech history.
This settlement stems from Facebook's sale of users' data to an outside firm for creating psychological and political profiles, violating user privacy. The legal battle began when New Mexico filed charges in 2021, alleging that Meta's public statements about data privacy were misleading. A jury in Santa Fe recently found Meta guilty of violating 43 million consumer protection laws, each carrying a maximum penalty of $5,000.
This settlement is part of a series of agreements Meta has made amid the growth of its AI product, Muse. Meta also settled a case with 47 states, paying $17.1 billion for endangering children on its platforms, including Facebook, WhatsApp, and Instagram. This includes a $459 million payout related to the Cambridge Analytica scandal.
New Mexico's success in suing Meta reflects the state's ongoing efforts to hold the company accountable for consumer protection violations and privacy breaches. Despite Meta's immense valuation of nearly $2 trillion and $42 billion in profit in the first half of 2026, it was required to make substantial payments to settle these lawsuits.
Written by urgent.news from The A.V. Club's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
