New Mexico asks a judge to order Meta to pay up to $40B after a jury found it willfully deceived customers, in what could be the biggest US court penalty ever

Meta's stock price faces a significant downside risk of up to $40 billion due to New Mexico's penalty request.

New Mexico's Attorney General Raúl Torrez is seeking up to $40 billion in civil penalties from Meta Platforms Inc. This request follows a jury's finding that Meta willfully deceived its customers. The potential penalty, if awarded, would represent the largest verdict in US legal history. The state's attorney argued that financial penalties are the most effective way to communicate with Meta, referencing the company's stock price as a measure of impact. The hearing took place in Santa Fe, where the state's legal team presented their case for significant damages.

The substantial penalty sought by New Mexico underscores a growing trend of state-level regulators pursuing aggressive enforcement actions against major technology companies. This case highlights the potential for significant financial repercussions beyond federal oversight, signaling a more complex and challenging regulatory environment for platforms like Meta. The jury's finding of willful deception could set a precedent for future consumer protection lawsuits against tech giants.

This development poses a direct threat to Meta's financial standing and could influence how other states approach similar cases involving consumer data and platform transparency. The magnitude of the requested penalty suggests that companies may need to re-evaluate their risk management strategies and data handling practices to avoid such severe financial penalties in the future. The outcome will be closely watched by the tech industry and consumer advocacy groups alike.