Clearview AI's $50 Million Settlement: A New Approach to Privacy Lawsuits

Clearview AI has reached a $50 million settlement in an Illinois lawsuit that accused the company of violating privacy rights through its collection of facial data. Instead of a direct payout, plaintiffs will receive a share of the company’s future value. The move is seen as a creative financial solution.


PTI | Chicago | Updated: 22-06-2024 04:01 IST | Created: 22-06-2024 04:01 IST
Clearview AI's $50 Million Settlement: A New Approach to Privacy Lawsuits
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Clearview AI has agreed to a groundbreaking $50 million settlement in an Illinois lawsuit over privacy rights violations. The settlement, which gained preliminary court approval, uniquely awards plaintiffs a share of the company's potential future value rather than a traditional cash payout. Legal fees are estimated at $20 million.

Judge Sharon Johnson Coleman of the Northern District of Illinois approved the settlement, which consolidates lawsuits from across the United States. These suits accused Clearview of scraping photos from social media and the internet to build a database sold to private and public entities. In 2022, Clearview agreed to stop selling its database access to private businesses or individuals in another Illinois case.

Lead plaintiffs' attorney Jon Loevy described the settlement as a "creative solution" due to Clearview's financial limitations. Victims will now gain potential future returns from the company, partially reclaiming ownership of their biometrics. However, critics argue the settlement fails to prevent Clearview from continuing its controversial facial recognition practices.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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