In re Clearview AI Class Settlement

In re Clearview AI Consumer Privacy Litigation — Equity-Based Class Settlement (N.D. Ill.)
N.D. Ill. · In re Clearview AI, Inc. Consumer Privacy Litig., MDL 2967, No. 1:21-cv-00135 (N.D. Ill.)

Status
Blocked / in litigation
Took effect
June 21, 2024
Applies to
Clearview AI, Inc.

A nationwide BIPA class action against Clearview AI settled in 2024 on an unusual basis: rather than cash, class members receive a 23 percent equity interest in Clearview, valued by plaintiffs at up to $51 million depending on company valuation. The arrangement reflected Clearview's inability to pay cash damages of the magnitude BIPA would require.

Who is protected: Nationwide class of individuals whose photos were scraped into Clearview's faceprint database

Legal detail

In re Clearview AI, Inc. Consumer Privacy Litigation, MDL No. 2967, No. 1:21-cv-00135 (N.D. Ill., final approval June 21, 2024; Judge Sharon Johnson Coleman). Settlement structure: class receives 23% post-money equity stake in Clearview (or 17% with cash sale option). Objections from 22 state AGs over inadequacy; approved over objections.

Key facts

JurisdictionN.D. Ill.
LevelFederal
CitationIn re Clearview AI, Inc. Consumer Privacy Litig., MDL 2967, No. 1:21-cv-00135 (N.D. Ill.)
Topicsfacial recognition · biometric data · consumer data privacy
Court recordIn re Clearview AI Litigation — CourtListener MDL 2967

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