A U.S. court has approved a settlement in Clearview AI’s litigation on biometric data, granting claimants a 23% stake in a potential IPO, estimated at $51.75 million. Clearview’s facial recognition tech improves FBI investigations of online child abuse cases. While concerns over opt-out practices linger, the settlement allows continued operations under established agreements with law enforcement agencies.
A U.S. district court judge approved a settlement concerning Clearview AI’s litigation related to alleged biometric data privacy violations. This settlement provides claimants with a 23% stake in the company if it becomes publicly traded, potentially valued at approximately $51.75 million based on last year’s assessments.
During the hearing, Clearview’s legal representation noted that their facial recognition technology has enhanced the FBI’s effectiveness in locating victims of online child sexual abuse by threefold. The settlement ensures that these operations can continue, highlighting the technology’s importance in law enforcement.
Judge Sharon Johnson Coleman observed a minimal level of opposition among claimants regarding the settlement. Although some policy concerns raised by objectors were acknowledged as valid, Coleman determined they didn’t warrant rejection of the settlement, considering the potential complexity and costs involved in prolonged litigation.
There were 16 formal objections and 1,008 requests for exclusion from class members that Coleman deemed “remarkably low” given the scale of the case. Approximately 70% of U.S. adults received notifications about the settlement an average of 2.6 times each.
A brief from 23 attorneys general criticized the settlement for lacking injunctive relief, and although Coleman recognized concerns about Clearview’s opt-out process, she did not mandate any changes, citing risks of overreach.
Should Clearview go public, compensation will vary: claimants in Illinois would receive 10 shares, while those in California, New York, and Virginia would get 5 shares each, and individuals from other states would receive 1 share.
Following a prior agreement with the ACLU to resolve claims involving the Illinois Biometric Information Privacy Act (BIPA), Clearview is limited to selling its facial recognition technology exclusively to law enforcement and government entities.
The approval of the settlement in Clearview AI’s litigation underscores the ongoing controversies around biometric data privacy and facial recognition technologies. While the ruling allows Clearview to continue offering its services to law enforcement, concerns remain regarding the adequacy of protections for individuals and the effectiveness of opt-out measures. The outcome of this case may set significant precedents for future biometric data laws and practices.
Original Source: www.biometricupdate.com
