· Chicago, IL
Federal judge approves Clearview AI settlement paying class in company equity, valued at $51.75 million
On March 20, 2025 U.S. District Judge Sharon Johnson Coleman in the Northern District of Illinois granted final approval to a nationwide class settlement of consolidated Illinois Biometric Information Privacy Act and other state-law claims against Clearview AI, which built a database of tens of billions of face images scraped from social media and other websites. Rather than a cash fund, the class receives a 23 percent equity stake in the company, valued at about $51.75 million on an agreed $225 million company valuation as of January 2024, with an option to take 17 percent of revenue through September 2027 instead. The value is contingent on the class being able to monetize the stake. The deal followed the ACLU’s separate 2022 Illinois consent order barring Clearview from selling its database to private entities nationwide and to any Illinois entity, including police, for five years. European regulators have separately fined the company, including a €30.5 million Dutch penalty announced September 3, 2024.
$51,750,000Settlementreportednot on THE TABEstimated value of the 23% equity stake; paid by the vendor to a private class, not by any government, and contingent on a future sale or IPO. Not public money.
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Sources
- Judge OKs Loevy's Innovative $51.75 Million Settlement in Clearview AI Class Action Lawsuit
- Clearview AI Gets Settlement Approved in Face-Scan Privacy Case
- In Big Win, Settlement Ensures Clearview AI Complies With Groundbreaking Illinois Biometric Privacy Law
- Dutch DPA imposes a fine on Clearview because of illegal data collection for facial recognition[archive]