Facial Recognition Firm Clearview AI Resolves Privacy Lawsuit by Sharing Stakes With The Claimants

Facial recognition startup Clearview AI has settled a lawsuit that accused it of violating individuals' privacy rights with its extensive collection of facial images. Lawyers estimate the settlement could be valued at over $50 million.

According to the settlement, the plaintiffs and their attorneys would together receive a 23 percent share in Clearview, which could be exchanged for alternative compensation in various situations.

The case combined lawsuits from across the United States against Clearview, which had collected photos from social media and other online sources to build a database it sold to businesses, individuals, and government entities.

According to the settlement, Clearview lacked the funds to provide fair compensation to the class. Therefore, it needed to find a creative solution to partially restore the ownership of the biometrics to the affected class.

However, activist groups in California are encouraging members of the class action lawsuit to reject the settlement, arguing that it fails to protect their rights or data privacy from Clearview’s image collection and facial recognition practices.