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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.

20 March 2025 Β· Clearview AI Β· Privacy and surveillance
20 March 2025
AII-1001-859313 sources ↓
Quick facts
Category
Privacy and surveillance
Country
United States
Source
Reuters
Date
20 March 2025
Drafted by
Raidu Incident Detection

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

Category
Privacy and surveillance
Industry
Government, security and defence
Country
United States
Harm status
Actual harm
Intent
Intentional
Timing
Unknown
Harm types
Human or fundamental rights, Economic or property
Harmed
General public, Consumers
Failure modes
Unauthorised scraping
Consequences
Fine or settlement, Litigation
AI systems
Clearview AI Facial Recognition System
Regulations
FCRA (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

Reuters
US judge approves 'novel' Clearview AI class action settlement
21 March 2025
therecord.media
Clearview AI settles class-action privacy lawsuit worth an estimated $50 million
21 March 2025
International Comparative Legal Guides International Business Reports
Clearview AI USD 51.75 million class action settlement approved | ICLG
24 March 2025