Source: Fortune.com
Summary
A New Mexico jury found Facebook, now known as Meta, liable for deceiving users about privacy protections, citing over 43 million violations of state consumer protection law. The state seeks up to $5,000 per violation, potentially totaling $200 billion. The case centered on a data breach involving Cambridge Analytica and 87 million profiles. Meta disputed the evidence, calling it outdated. The judge will determine penalties in October. The verdict follows previous settlements and lawsuits against the company.
Our Reading
The numbers tell one story.
Jury found 43 million violations of consumer law.
Meta claims evidence was outdated and unrepresentative.
State seeks maximum penalties, but impact on profits is unclear.
Meta has faced multiple legal setbacks but remains profitable.
Author: Evan Null
Facebook’s Legal Troubles Continue
Facebook, now Meta, faces another legal setback after a New Mexico jury found it liable for deceiving users about privacy protections. The case centers on a data breach that involved 87 million user profiles and was linked to Cambridge Analytica. The jury found over 43 million violations of state consumer protection law, but the final penalty remains to be determined by a judge.
The trial focused on Facebook’s handling of data from a third-party personality quiz that was used to target political ads. The now-defunct firm, Cambridge Analytica, had clients including the 2016 Trump campaign. The state argued that Facebook misled users about how their data was being used and protected.
Meta disputed the claims, calling the state’s evidence outdated and arguing that the company has since improved its policies. The company also denied allegations that it allowed harmful content to proliferate on its platforms. Despite the verdict, the financial impact on Meta remains uncertain given its high profit margins.
The case is part of a broader trend of legal challenges against Meta. In August, the company agreed to pay up to $18 billion to settle a multistate lawsuit over child safety issues. New Mexico was the only state to pursue a separate case on the Cambridge Analytica breach, while Florida also chose not to join the settlement.
The judge will decide on penalties during a hearing in October. The state plans to use any funds from the case to support its education system. The outcome of this case could set a precedent for future litigation against Meta and other tech companies.
