A US judge in Chicago has approved a unique nationwide class-action settlement that will resolve privacy claims against facial recognition company Clearview AI without any immediate and specific monetary payout for victims. In her ruling, US District Judge Sharon Johnson Coleman said the structure of the accord, which will be the basis for an eventual settlement fund with multiple options, was fair and reasonable. For background, a class action lawsuit was initiated against Clearview for alleged scraping of facial images from the web and sale of that personal information without consent (in violation of Illinois biometric privacy law). The settlement deal has been considered a “novel” resolution because rather than establishing a settlement fund, it provides class action members with a potential total holding of a 23% stake in the company. If Clearview goes public through an IPO or is liquidated through a merger or sale, the fund would be based on a percentage of the company’s value. Clearview’s current value could be as high as $225 million, which would yield a $51.75 million settlement fund.
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