Facebook Found Guilty of Deceiving Millions of Users and Could Face a $200 Billion Penalty

A Landmark Verdict Against Meta

A Santa Fe jury found Facebook liable on Friday, September 25, 2026, for deceiving users about platform privacy protections, marking a major legal defeat for parent company Meta Platforms in over 43 million violations of New Mexico consumer protection law. The verdict is one of the most consequential legal actions ever brought against a social media giant, and it could set a precedent for how states pursue accountability from Big Tech companies that have long operated with minimal consequence.

The jury found over 43 million violations of state consumer protection law, and it is now up to the judge to determine how much the company would pay, with attorneys representing the state asking for the maximum $5,000 penalty per violation. Do the math: if the judge awards the maximum, Meta could be staring down a penalty exceeding $200 billion — a figure that would dwarf any tech-related fine in American history.

Cambridge Analytica and a Decade of Deception

The two-week trial in Santa Fe centered on accusations that Facebook deceived users about a data breach stemming from a third-party personality quiz that harvested data from roughly 87 million profiles and sold it to a political consulting firm, Cambridge Analytica, to generate targeted ads. That scandal, which first erupted around the 2016 U.S. presidential election, has haunted Meta ever since — but this verdict suggests the legal fallout is far from over.

The jury reviewed 34 statements made by the company about data protections and content policies, finding the company deceived users about its practices in almost every case. The jury found that Facebook made false or misleading statements assuring consumers that they controlled how their information was shared, that Facebook did not sell or provide their personal information to advertisers, and that its statements about misinformation and hate speech were willfully deceptive. Among the statements found to violate New Mexico's Unfair Practices Act were Facebook's representations that it did not profit from misinformation or hate, that it removed harmful misinformation, and that it did not allow hate speech on its platform.

New Mexico Went It Alone — and Won

Court records showed New Mexico opted out of an $18 billion multistate settlement reached by Meta in August that shielded the company from future Cambridge Analytica liabilities. That was a bold gamble — and it paid off. Buried in the 130-page settlement was an agreement to release Meta from future liability related to the Cambridge Analytica privacy breach, making New Mexico the only state to decide to pursue a case on its own. Florida was the only other state that did not sign the settlement, saying it was not tough enough on Meta, leaving the door open for future litigation.

New Mexico Attorney General Raúl Torrez was direct in his assessment of the outcome. "For years, Facebook operated as if the rules that apply to everyone else didn't apply to them. Today, a jury of New Mexicans said otherwise," Torrez said. "This is a historic verdict, not just for New Mexico, but for every state fighting to hold Big Tech accountable." Meta, for its part, pushed back. "We disagree with the verdict and will continue to defend ourselves against efforts to distort our record," said Alex Burgos, spokesperson for Meta.

What Comes Next for Meta and Its Users

Also this year, New Mexico won judgments totaling $942 million from Meta in a two-phase trial about the company's safety protections for minors, and the court ordered Meta to implement new safeguards, including age-verification technology and time limits on its platforms. The privacy verdict adds yet another front to an already sprawling legal battle the company is fighting on multiple fronts.

The actual penalty amount is left entirely to the judge's discretion and will be determined in a later phase of the case. Presiding state judges will schedule a subsequent hearing to determine total monetary damages and consider requested injunctions halting future deceptive practices. Regardless of the final dollar figure, the message from a New Mexico courtroom is clear: promising users one thing while quietly doing another is no longer a cost-free business strategy. For the billions of people who use Facebook every day, this verdict is a reminder that the fight over who really controls your data is still very much alive.