Clearview AI settles class-action privacy lawsuit for $50 million
Clearview AI reached a settlement in a class-action lawsuit alleging the company violated Illinois' Biometric Privacy Act by scraping billions of facial images from the web and selling them without consent. A federal judge approved the settlement worth an estimated $50 million, with the company's unusual financial structure giving plaintiffs a stake in Clearview's future value rather than a lump sum payment.
What happened
Clearview AI scraped billions of Americans' facial images from the web and sold access to its facial recognition database without individuals' consent. The company's collection practices sparked international outcry when revealed by the New York Times in 2020.
A federal judge approved a proposed settlement between Clearview AI and class-action plaintiffs that alleges the company violated Illinois' Biometric Privacy Act. Judge Sharon Johnson Coleman estimated damages at over $50 million.
Reported impact
The settlement structure gives plaintiffs and their lawyers a stake in Clearview's future value instead of a lump sum payment, as the company lacked sufficient funds for a conventional payout given that nearly all Americans could be considered class members since most people's faces appear online.
Twenty-two state attorneys general and the District of Columbia opposed the settlement, arguing it does not do enough to prevent future harms and that a majority of the settlement would be used to pay plaintiffs' lawyers.
Index analysis
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 did not acknowledge liability under the terms of the class-action settlement.
Governance controls
Clearview AI underwent a leadership change in February 2025, with CEO Hoan Ton-That resigning and being replaced by two co-CEOs, one with strong ties to President Donald Trump.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.