Clearview AI, a facial recognition startup, has reached a settlement in an Illinois lawsuit alleging privacy violations due to its extensive collection of facial images. Estimated to exceed $50 million, the settlement is unique as it offers plaintiffs a share of Clearview AI’s potential value instead of a direct payout, with attorneys’ fees amounting to $20 million deducted from the settlement. Judge Sharon Johnson Coleman granted preliminary approval to this agreement, which consolidated multiple lawsuits from across the U.S. against Clearview AI for compiling photos from social media and other online sources into a commercial database.
The settlement builds upon a previous 2022 agreement where Clearview AI halted sales of its database to private entities in Illinois but continued working with federal agencies and law enforcement. Clearview AI, however, does not admit liability under the terms of this latest settlement. Both the company and plaintiffs’ attorneys view the settlement as a creative solution given Clearview AI’s financial constraints, allowing affected individuals to potentially benefit from the company’s future successes.
Despite receiving preliminary approval, the settlement’s impact remains uncertain, including the number of eligible plaintiffs and the extent of participation in the settlement. The agreement encompasses anyone whose biometric data or images were stored in Clearview AI’s database since July 1, 2017, and resided in the U.S., with a national campaign planned to notify potential claimants. Critics, including privacy advocates and ongoing litigants against Clearview AI, argue that the settlement does not adequately address the underlying privacy concerns and allows the company to continue its controversial practices without significant change.
