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Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. Dado Ruvic/Illustration
Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. Dado Ruvic/Illustration
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Legal Industry

US states balk at unusual Clearview AI privacy settlement

December 13th, 2024 | 20:39 PM Legal Industry 3

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By Mike Scarcella

Twenty-two U.S. states and the District of Columbia told a judge they are opposed to a settlement that would resolve privacy claims against facial recognition company Clearview AI without a concrete plan to award class action damages.

In a court filing on Thursday, the states — a bipartisan group that includes New York, California, Arizona and Tennessee — urged U.S. District Judge Sharon Johnson Coleman in Chicago to reject the unusual accord.

The states are not a party in the case, which was brought on behalf of millions of Americans who said Clearview violated their privacy, but they said class members “should be guaranteed fair and meaningful compensation.”

Attorneys for Clearview and the class did not immediately respond to requests for comment, and neither did a lead attorney for the states.

Clearview was accused of scraping billions of facial images from the web and selling information without consent, in violation of an Illinois privacy law that protects biometric data such as faces and fingerprints. It has denied any wrongdoing.

The proposed settlement, made public in June, would base a damages payment to class members on Clearview's value if the company goes public through an IPO or is liquidated through a merger or sale. The plaintiffs’ lawyers have estimated that such a fund could be more than $51 million.

The states said the settlement gives class members “an unknown financial stake in the very company that harmed them.” The states also criticized the class lawyers’ request for a 39% cut of the settlement in legal fees, which could amount to tens of millions of dollars. The states called the percentage “exorbitant.”

Clearview and the class attorneys told Coleman that the states lodged their arguments too late and she should not consider them.

The states countered that they are not class members and so did not need to file their objection within the timeline set by the court.

The judge said she would hold a hearing on Monday.

In 2022, Clearview reached a separate accord with the American Civil Liberties Union in which the company said it would stop granting paid or free access to its database of facial images to most private businesses and individuals, and would stop providing its database to government agencies in Illinois for five years.

The case is Clearview AI, Inc., Consumer Privacy Litigation, U.S. District Court for the Northern District of Illinois, Case no. 1:21-cv-00135

For the plaintiffs: Jon Loevy, Michael Kanovitz and Thomas Hanson of Loevy & Loevy

For Clearview: James Thompson and Daniel Lynch of Lynch Thompson

Read more:

Legal Fee Tracker: Clearview AI's choose-your-own-adventure privacy settlement

Clearview AI strikes 'unique' deal to end privacy class action

U.S. judge warns law firms in Clearview AI lawsuit over 'disarray'

  • Topic
  • SETTLEMENT
  • CLEARVIEW
  • PRIVACY/COURT
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