A New Mexico judge ordered Meta to pay a $25 billion penalty for "lies" and "false promises" about protecting users' privacy and personal data, describing a systematic pattern of deception over more than a decade. Meta said it will appeal, calling the ruling an attempt to impose a tax on speech. On its third-quarter earnings call, CEO Mark Zuckerberg touted the "state-of-the art privacy and security" of Muse, while the author recalls that the FTC fined Facebook, now Meta, a record $5 billion in 2019. Analysts asked no questions about the New Mexico case, even though Meta's third-quarter results included a $9.9 billion charge tied to a $17 billion settlement with 47 states. Meta shares fell 7% to $648.45 on Thursday, a drop the article attributes more to planned AI-related capital expenditures than to the New Mexico ruling.
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METAartificial intelligenceprivacylawsuits
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/22/2026 | 648.85 |
| Change that session | -6.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Meta ordered to pay $25 billion privacy penalty
- Why Meta Platforms Stock Took a Hit Today
Meta Platforms shares were down about 7.2% at 1:10 p.m. ET on Thursday, after falling as much as 7.6% earlier. Third-quarter revenue rose 26% to $64.6 billion, but diluted EPS of $3.83 included a $9.9 billion charge tied to a recent legal settlement over teen social media addiction; excluding it, EPS would have been $7.40, versus consensus estimates of $5.46. Investors reacted to the creation of non-voting Class C shares, effective Jan. 19, 2027, to raise capital for AI spending, employee compensation and potential acquisitions, while CEO Mark Zuckerberg retains over 60% voting control. Separately, New Mexico ordered a record $25 billion judgment over the Cambridge Analytica scandal, which Meta plans to appeal. At 22 times earnings, the stock trades below its 3-year average multiple of 27, though the article notes investors should weigh its legal exposure.
- Meta beats expectations but legal penalties hit profit amid AI race
Meta beat investor expectations for third-quarter revenue as it pushes harder into AI, but profit of $9.86 billion came in almost 50% below expectations, dragged by a $9.9 billion charge tied to an $18 billion settlement with nearly all US states. Hours earlier, a judge ordered Meta to pay New Mexico $25 billion over a case linked to the Cambridge Analytica scandal. CFO Susan Li said the company still faces a number of youth-related trials in the US in the coming months. CEO Mark Zuckerberg expects Reality Labs losses to improve and trend toward profitability, and said 10 million people in the US and Canada already use its Muse AI model.
- Meta ordered to pay $25 billion in New Mexico case over Cambridge Analytica scandal
- Meta Boosts Bet on AI With Spending Outlook, New Stock Class
Meta reported third-quarter revenue of $64.2 billion, up 26% year over year, its highest quarterly revenue ever. EPS was $7.40 on an adjusted non-GAAP basis excluding a charge of about $10 billion, but $3.57 after including it. The company narrowed its capex range, with the upper end at $145 billion, while overall expenses keep climbing. Commentators said advertising remains the core business, with growth driven by pricing rather than volume, while Meta faces youth-related litigation that it has previously said could materially affect results. The stock rose about 4% in after-hours trading.
- Meta hit with $25-billion penalty for misleading Facebook users about data privacy
A New Mexico judge ordered Meta, Facebook's parent company, to pay $25 billion for misleading users about how it collects and protects their data, one of the largest penalties ever against Meta or any company. New Mexico sued in 2021 after revelations that a U.K. political consulting firm harvested millions of Facebook users' data without consent. In September a jury found Meta committed 43 million violations of state consumer protection laws through false or misleading statements on privacy and efforts to combat misinformation and hate speech, with penalties of up to $5,000 per willful violation. Meta said it plans to appeal, and its chief legal officer, C.J. Mahoney, called the case an attempt to impose a tax on speech.
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