TLDRNew Mexico prosecutors requested a judge impose fines ranging from $35 billion to $40 billion on Meta.The lawsuit centers on the Cambridge Analytica controversy, in which Facebook harvested personal information from as many as 87 million users without permission.Jurors determined that 26 out of 29 company statements were deceptive, representing over 43 million state consumer law infractions.Meta argues any fine should not exceed $3.45 billion, describing the state’s demand as unconstitutional.A ruling from Judge Francis Mathew is anticipated before month’s end.Meta Platforms (META) stock edged higher by 0.10% Thursday while the social media giant faced arguments in a New Mexico courtroom that could result in one of the largest civil penalties in corporate history. State attorneys requested a fine of $35 billion to $40 billion for alleged privacy violations and misleading public statements.Meta Platforms, Inc., METAThe penalty hearing in Santa Fe followed a jury decision delivered on September 25.In that verdict, jurors concluded that Meta deceived Facebook users regarding data handling practices. The case also examined the company’s approach to moderating hateful content and false information.The legal action stems from the Cambridge Analytica controversy. The British consulting firm, which provided services for Donald Trump’s 2016 presidential campaign, obtained personal information from up to 87 million Facebook accounts via a third-party application, all without user authorization.Jury Verdict DetailsThe jury examined 29 specific statements issued by Meta and company executives. They determined that 26 of those statements qualified as deceptive.This resulted in a calculation of more than 43 million infractions of New Mexico’s consumer protection statutes. That figure derives from the total number of Facebook users or New Mexico residents who were exposed to each misleading claim.Meta’s legal team contended during trial proceedings that the statements were selectively chosen. They emphasized that the company had previously acknowledged imperfections in how it managed privacy concerns and misinformation.Under state regulations, the presiding judge has authority to impose fines of up to $5,000 for each violation. Randi McGinn, representing New Mexico, acknowledged that applying the maximum penalty would likely trigger constitutional due process objections.Competing Penalty ProposalsMcGinn proposed the $35 billion to $40 billion range instead. She explained this represents roughly 20% of the theoretical maximum and would impact Meta’s market valuation while remaining within constitutional boundaries.“This court should speak to Meta in the only language it understands, which is money, and the value of its stock price,” McGinn told the judge.Meta’s legal counsel, Matt Nicholson, vigorously contested the proposal. He characterized the state’s demand as an “astronomical penalty” that would breach several constitutional protections.In written submissions, Meta requested the judge limit any financial penalty to $3.45 billion. The corporation insists it never commercialized user information and contends New Mexico produced no evidence that consumers were genuinely deceived.Judge Mathew delivered pointed remarks during Thursday’s proceedings. When Meta challenged the magnitude of the state’s request, he noted that choosing to proceed to trial carries inherent risks.“They have to accept the consequences of their decision to go to trial, do they not?” he said.New Mexico originally filed the complaint in 2021. The lawsuit alleged Meta made false representations about data access controls and the seriousness with which it addressed harmful platform content.State prosecutors maintained that the company permitted hate speech and misinformation to flourish when removing such content might harm profitability. This allegation formed a core element of the state’s case throughout the trial.Judge Mathew indicated he plans to announce his penalty decision before the end of this month. The precise financial impact on Meta remains uncertain pending that ruling.The litigation is formally designated as State of New Mexico, et al., v. Meta Platforms, Inc., case number D-101-CV-2021-00132, in the First Judicial District Court of New Mexico.The post Meta (META) Faces Massive Penalty Decision in Cambridge Analytica Privacy Case appeared first on Blockonomi.