June 24, 2024 at 03:22AM
Clearview AI settled a lawsuit in Illinois, potentially worth over $50 million. The unique agreement grants plaintiffs a share of the company’s value, rather than a traditional payout. Clearview can still work with federal agencies and law enforcement outside Illinois. The settlement engages potential plaintiffs nationally. However, critics say the deal legitimizes Clearview’s controversial practices.
From the meeting notes, it can be concluded that Clearview AI has reached a settlement in an Illinois lawsuit, with a potential worth estimated to be more than $50 million. The unique agreement involves giving plaintiffs a share of the company’s potential value instead of a traditional payout, with attorneys’ fees estimated at $20 million coming out of the settlement amount. Judge Sharon Johnson Coleman gave preliminary approval to the agreement. The case involved consolidated lawsuits from around the U.S. filed against Clearview for its practices of collecting faces from social media and creating a database sold to businesses, individuals, and government entities.
Clearview AI settled a separate case in Illinois in 2022, agreeing to cease selling access to its database to private businesses or individuals while still being allowed to work with federal agencies and local law enforcement outside Illinois. Importantly, the company does not admit any liability as part of the latest settlement agreement. The lead plaintiffs’ attorney and a representative of Clearview AI both commented on the agreement, with the lead plaintiffs’ attorney calling it a “creative solution” due to Clearview’s financial status.
The settlement is comprehensive, covering anyone whose images or data are in the company’s database and who lived in the U.S. starting from July 1, 2017, with a national campaign to notify potential plaintiffs. Furthermore, the attorneys for Clearview and the plaintiffs collaborated with a retired federal judge to develop the settlement, who stated that the startup could not have paid any legal judgment if the suit went forward. However, some privacy advocates and individuals pursuing other legal actions expressed disappointment with the agreement, believing it won’t change the company’s operations.
Additionally, the meeting notes refer to related news about Clearview AI. France punished Clearview AI for failing to pay a fine, the UK regulator fined the company, and a Canada probe concluded that the company breached privacy laws. This additional context provides a broader understanding of Clearview AI’s legal and regulatory challenges.