A jury in Santa Fe, New Mexico, ruled that Meta, formerly Facebook, made willfully deceptive public statements about its handling of the Cambridge Analytica scandal and policies on hate speech, violence, and misinformation. The verdict comes nearly eight years after the scandal first emerged, highlighting ongoing legal and regulatory scrutiny over Meta's data privacy and content moderation practices.

  • Meta found liable for nearly 44 million deceptive statements.
  • Deceptions include Cambridge Analytica and content moderation claims.
  • Judge to determine penalties after liability ruling.

What happened

A jury in Santa Fe, New Mexico, concluded that Meta intentionally misled the public on numerous statements related to the Cambridge Analytica data privacy scandal and its policies on hate speech, misinformation, and violence. The trial presented depositions from Meta’s CEO Mark Zuckerberg and former COO Sheryl Sandberg, who were questioned on privacy practices and content moderation strategies like the "cross-check" list giving special treatment to high-profile users.

Jurors identified 26 out of 29 challenged claims as willfully deceptive, spreading these violations across public statements from Meta executives and media outlets. The total number of violations assessed was about 43.9 million, reflecting an estimate of affected New Mexico residents and Facebook users. The trial focused on liability, leaving the amount of financial penalties to be set by the presiding judge.

Why it matters

This verdict marks a significant legal moment for Meta, occurring years after the original Cambridge Analytica scandal shook the tech and data privacy landscape. It underscores persistent concerns over transparency and accountability from powerful social media platforms regarding how they handle user data and moderate harmful content.

The finding conflicts with a recent large settlement Meta reached with most other state attorneys general, where claims related to Cambridge Analytica were released for $459 million as part of a broader $17 billion child safety settlement. New Mexico’s refusal to join that deal and the resulting jury verdict may influence other state regulators and highlight growing dissatisfaction with the adequacy of these settlements.

What to watch next

The next key development will be the judge’s decision on the financial penalties Meta will face for these findings of deceptive conduct. Unlike a prior child safety case in New Mexico that resulted in over $900 million in combined penalties and funds to aid youth, this trial only fixed liability, with fines to be determined.

Additionally, the case may provoke further regulatory and legal action against Meta as other states and stakeholders assess the impact of New Mexico’s stance and jury ruling. Meta’s assertion of free speech rights and defense of platform management could face intensified scrutiny, and the company’s future transparency and moderation policies will be closely monitored in this evolving global digital policy environment.

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