Clearview AI settles class-action privacy lawsuit worth an estimated $50 million

A federal judge has approved a proposed settlement between Clearview AI and class action plaintiffs, ruling that the deal fairly resolves allegations that the company infringed upon millions of Americans’ privacy rights.

Judge Sharon Johnson Coleman estimated damages to be over $50 million. The unusual financial structure for the deal gives plaintiffs and their lawyers a stake in Clearview’s future value instead of a lump sum payment.

The controversial company did not have money for such a payout in part because nearly all Americans could be considered class members since most people’s faces appear online.

The case, tried in an Illinois federal court, alleged Clearview, which scrapes billions of Americans’ facial images from the web and sells them without individuals’ consent, violated Illinois’ Biometric Privacy Act.

Clearview does not acknowledge liability under the terms of the settlement. 

Twenty-two state attorneys general and the District of Columbia had fought the settlement, saying it does not do enough to prevent future harms and because a majority of the settlement will be used to pay plaintiffs’ lawyers.

In 2022, Clearview resolved a separate case with the ACLU, agreeing to no longer provide most private companies and Illinois government agencies’ access to its database for five years.

The company recently went through a leadership shakeup, with Hoan Ton-That resigning as CEO in February. Clearview now has two co-CEOs, one with strong ties to President Donald Trump.