A Santa Fe jury found Facebook liable on Friday for deceiving users about platform privacy protections.
The verdict marks a major legal defeat for parent company Meta Platforms in over 43 million violations of New Mexico consumer protection law.
State attorneys requested the maximum statutory penalty of $5,000 per violation during the two-week trial.
Presiding state judges will schedule a subsequent hearing to determine total monetary damages and consider requested injunctions halting future deceptive practices.
Cambridge Analytica and Deceptive Statements
Prosecutors demonstrated that Facebook made deceptive public statements regarding data security stemming from a third-party personality quiz.
The software harvested information from 87 million user profiles before selling data to political consulting firm Cambridge Analytica during the 2016 Trump presidential campaign.
Jurors reviewed 34 corporate statements regarding content moderation and user protections, concluding the social media giant misled the public on data broker investigations across New Mexico's entire population of two million residents.
However, the jury rejected claims that Facebook made false statements about removing harmful content or pandemic misinformation.
"The verdict marks a significant victory for New Mexico consumers and holds one of the world's largest technology companies accountable for its conduct," said the New Mexico Department of Justice.
Court records showed New Mexico opted out of an $18 billion multistate settlement reached by Meta in August that shielded the company from future Cambridge Analytica liabilities.
The state previously secured $942 million in judgments against Meta regarding safety measures for underage users.
"We disagree with the verdict and will continue to defend ourselves against efforts to distort our record," said Alex Burgos, spokesperson for Meta.
Defense attorneys maintained during closing statements that state prosecutors relied on outdated evidence while uncovering only one additional data breach over five years.
Chief Executive Officer Mark Zuckerberg asserted in video testimony that the company maintained robust content review protocols.
"Meta's platforms are forums for free expression.
We have a First Amendment right to manage those platforms in a way we believe best serves the interests of our community.
This means prioritizing free speech, protecting our users' information and giving them control over their data," said Burgos.
State attorney Randi McGinn argued to jurors that Facebook intentionally profited from harmful content, a claim defense lawyers strongly denied throughout trial proceedings.
