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Judge Delays Ruling on Facebook Payout in New Mexico Trial

Judge Delays Ruling on Facebook Payout in New Mexico Trial

ALBUQUERQUE, N.M. — A judge in Santa Fe has delayed a ruling regarding the penalties in the recent case against Facebook. A New Mexico jury found Facebook liable for misleading users about their privacy protections, resulting in millions of violations of the state's consumer protection law.

The state's attorneys initially sought the maximum penalty of $5,000 per violation. However, during a recent court session, they indicated a willingness to accept a total payout of $35 billion. Facebook's legal team contended that even this adjusted figure would be astronomical.

The debate over the penalty centers on the state's argument that a lower amount would still hold Meta accountable for its actions. They emphasized that the company appears to respond only to financial repercussions or changes in its stock value. In contrast, Meta's defense argued that the proposed penalty would be unconstitutional and far exceed previous state settlements, potentially becoming the largest penalty in U.S. history.

Earlier this year, Meta reached a settlement with 47 states for nearly $17 billion, and New Mexico was awarded $947 million in its two trials against the company. Given that New Mexico's annual budget has hovered around $11 billion in recent years, the state's current request for nearly quadruple that amount raises significant concerns.

First Judicial District Judge Francis Mathew has decided to postpone the ruling until both sides submit additional filings. A final decision is not expected until two weeks from next Tuesday.

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