Facebook to face penalties after data privacy verdict in New Mexico

Meta lawsuit overview:

• Who: A New Mexico jury found Facebook Inc., owned by Meta, liable in a lawsuit brought by the state attorney general.
• Why: The jury found Facebook willfully misled residents about data privacy, hate speech, misinformation and its review of third-party app developers.
• Where: The verdict was reached in New Mexico state court.

A New Mexico jury has found that Facebook repeatedly misled the state’s residents about data privacy in a Meta lawsuit tied to the Cambridge Analytica scandal.

Attorney General Raúl Torrez’s office argued that CEO Mark Zuckerberg and other executives misrepresented how much control users had over their personal data in statements from 2010 to at least 2021, Law360 reports.

On Sept. 25, jurors found that 26 statements made by Zuckerberg and others amounted to unfair or deceptive trade practices under state law and that Facebook committed five counts of unconscionable trade practices.

The Meta lawsuit verdict holds Facebook liable for 43.9 million violations, counting each time a misrepresentation reached New Mexico residents online or through the media.

According to media sources, Judge Francis Mathew will set civil penalties later. State law allows $1 to $5,000 per violation, and, with the state seeking the maximum penalty, the amount could cap close to $219.5 billion. Any penalty money will reportedly go to a special fund for New Mexico schools and students.

“We disagree with the verdict and will continue to defend ourselves against efforts to distort our record,” Meta spokesperson Alex Burgos said in a statement, according to Law360.

The New Mexico Department of Justice said the case is the first state-led case of its kind to reach a jury verdict. 

The verdict follows a ruling by New Mexico Judge Bryan Biedscheid that required Meta Platforms to pay $567 million to address harm to children in the state after a jury found the company’s social media platforms “substantially contributed to a public nuisance.”

Meta Lawsuit claims Facebook hid Cambridge Analytica data privacy breach

State attorney Randi McGinn told jurors that Facebook began abusing users’ trust by 2010 regarding the control users had over their information, Law360 reports.

Trial evidence showed that the app This Is Your Digital Life, created by professor Aleksandr Kogan, was downloaded and installed by some 270,000 people. Because Facebook allowed such apps to collect data from users and their friends, Kogan and Cambridge Analytica obtained data from 87 million people, most of whom had not consented to the collection.

“They found out about it before the (2016) presidential election and they told no one,” McGinn said.

The state argued that Zuckerberg’s 2018 promises to Congress to investigate all app developers, notify affected users and shut down abusive developers were false.

Meta attorney Dane Butswinkas countered that the company is not required to be perfect but only to make a reasonable effort, Law360 reports. He said Facebook spent $130 million on an outside investigation, suspended 125,000 apps and banned 120 developers.

What do you think of the verdict in this Meta data privacy lawsuit? Let us know in the comments.

The state of New Mexico is represented by Randi McGinn of McGinn Montoya Love Curry & Sievers P.A. and Corban Rhodes, Adam Levitt, Daniel Schwartz, J. Gordon Bergstresser, Emma Bruder, Rebecca Trickey and Amy Keller of DiCello Levitt.

The Meta lawsuit is State of New Mexico v. Facebook Inc., Case No. D-101-CV-202100132, in the First Judicial Circuit Court of New Mexico.

Read About More Class Action Lawsuits & Class Action Settlements:

• Costco class action motion claims ‘clean nutrition’ is not lead-free promise
• Rivian recalls nearly 99,000 electric vehicles due to rearview camera software issue
• Walmart agrees to $16M settlement over expired infant formula claims
• Samsung class action alleges M Series TVs falsely marketed as Mini LED