New Mexico orders Meta to pay $25 billion in penalties

A New Mexico court ordered Meta to pay the state $25 billion in civil penalties, plus 15% annual interest until the amount is paid. The judgment, entered Oct. 21, followed a jury’s finding that Meta committed more than 43 million willful violations of the state’s Unfair Practices Act.

The New Mexico First Judicial District Court in Santa Fe entered the judgment on Oct. 21, following the jury’s Sept. 25 verdict. The court’s order recites a penalty calculation of about $219.5 billion before reducing the amount to $25 billion.

The case concerned Facebook representations about user data and other matters affecting consumers, including misinformation, hate speech and enforcement practices. The verdict was not a finding for the state on every allegation. The Associated Press reported that jurors rejected claims that Facebook falsely said it removed harmful content, including COVID misinformation.

The judgment directs Meta to pay the State of New Mexico; it does not award individual payments to Facebook users. The court reserved injunctive relief for further briefing, leaving that potential relief for later consideration.

The judgment is separate from Meta’s earnings charge i

Meta chief legal officer C.J. Mahoney disputed the ruling and said the company was confident it would prevail on appeal, according to the Associated Press. That statement describes Meta’s position; it does not establish that an appeal has been filed.

Meta reported its third-quarter results on the same day as the judgment. For the quarter ended Sept. 30, 2026, revenue increased 26% from a year earlier, but operating income fell 37%. Operating margin—the share of revenue left after operating expenses—was half its year-earlier level.

The figures show that higher revenue coincided with lower operating income. Meta reported costs and expenses of $51.613 billion, up 68% year over year. Its net income rose to $9.860 billion from $2.709 billion, but that comparison is affected by a nearly $16 billion one-time tax charge Meta reported in the year-earlier quarter.

Meta attributed a separate $9.89 billion third-quarter charge to an agreement with 52 attorneys general concerning litigation related to teen mental health and social media. That charge is not the New Mexico judgment. The order directs the $25 billion penalty to the state, while the separate charge relates to the attorneys-general agreement.