New Mexico Wants Meta To Pay $40 Billion In Penalties For Cambridge Analytica Scandal

An anonymous reader quotes a report from Reuters: The state of New Mexico asked a judge on Thursday to order Meta Platforms to pay between $35 billion and $40 billion in penalties after a jury found the company had misled consumers about the privacy of their data on Facebook in a case that came out of the Cambridge Analytica scandal. Attorneys for New Mexico made the request at a hearing in a lawsuit brought following revelations that the British political consulting firm, which worked on Donald Trump's 2016 presidential campaign, harvested personal data from as many as 87 million Facebook users through a third-party app without their consent. The jury returned its verdict on September 25. Judge Francis Mathew, who oversaw the trial in Santa Fe, will decide how much Meta must pay in financial penalties. [...] State law allows the judge to decide how much to fine Meta per violation, up to $5,000. At the hearing on Thursday, Randi McGinn, a lawyer for New Mexico, said applying the full $5,000 penalty to the number of violations would create too large of a penalty under the US Constitution's protections on due process. But the judge should order a significant payment that will impact the company, McGinn said. "This court should speak to Meta in the only language it understands, which is money, and the value of its stock price," McGinn said. She said $35 billion to $40 billion, which represents about 20% of the possible penalties that could be awarded under state law from the verdict, would impact the stock price while complying with Meta's right to due process under the Constitution. At the hearing on Thursday, Matt Nicholson, a lawyer for Meta, called the state's request an "astronomical penalty that would obviously violate a host of constitutional provisions." In court filings, Meta urged Mathew to cap the penalties at $3.45 billion. The jury may have said it found Meta's statements misleading, but the evidence shows that Meta does not sell user data and New Mexico did not prove that any consumer had actually been misled, the company said in court filings. The judge said he expected to issue a ruling later this month.

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