Clearview AI Settlement: $51.75M Biometric Privacy Class Action Guide

The Largest Biometric Privacy Settlement in History

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On March 20, 2025, a federal judge approved a groundbreaking settlement in the class action lawsuit against Clearview AI—the controversial facial recognition company that scraped over 60 billion photographs from the internet without consent. The settlement, valued at $51.75 million, is the largest biometric privacy resolution ever achieved.

But this isn’t a typical class action payout. Instead of receiving cash checks, class members collectively own 23% of Clearview AI. This innovative structure reflects both the unprecedented scale of the privacy violation and the financial reality of suing a startup that lacks the resources for traditional damages.

If you’ve ever posted a photo of yourself online, you may be a class member.

What Clearview AI Did

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The World’s Largest Facial Recognition Database

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Clearview AI built its business by scraping photographs from social media platforms, news websites, Venmo, and other publicly accessible online sources—without permission from the individuals photographed or the platforms hosting the images.

The company amassed a database of more than 60 billion facial images—roughly 8 images for every person on Earth. This database powers a facial recognition search engine sold primarily to law enforcement agencies.

How It Works:

1. Police upload a photo of a suspect or person of interest
2. Clearview’s AI compares the face against its 60+ billion image database
3. The system returns potential matches with links to original source pages
4. Officers can see where the person’s photos appeared online—social media profiles, news articles, dating sites

Why This Violates Privacy Laws

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Clearview’s mass scraping violated multiple state privacy laws:

Illinois BIPA (Biometric Information Privacy Act): Illinois law requires companies to obtain informed written consent before collecting biometric identifiers—including facial geometry data. BIPA provides statutory damages of $1,000 per negligent violation or $5,000 per intentional/reckless violation.

With billions of Illinois residents’ faces potentially in the database, Clearview’s theoretical BIPA liability reached astronomical figures.

Other State Laws: The class action also alleged violations of:

• California’s Unfair Competition Law
• New York privacy protections
• Virginia consumer protection statutes

The Class Action Settlement

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Settlement Structure: Why Equity Instead of Cash?

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This settlement breaks new ground by compensating class members with ownership in the company rather than cash. Here’s why:

The Math Problem:

• Potential class: Anyone with a photo online (hundreds of millions of people)
• BIPA damages: $1,000-$5,000 per violation
• Theoretical liability: Billions of dollars

The Reality: Clearview AI is a private startup without the capital or insurance coverage to fund a massive cash payout. A conventional settlement would have bankrupted the company before trial.

The Solution: Class members collectively receive a 23% equity stake in Clearview AI, based on a $225 million company valuation (as of January 2024). The settlement is worth approximately $51.75 million.

What Class Members Receive

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Your equity stake can convert to cash through three pathways:

Who Is a Class Member?

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You are likely a class member if:

• You reside or resided in the United States, AND
• You have photographs of your face posted to a publicly accessible webpage on the internet

This includes:

• Social media profiles (Facebook, Instagram, LinkedIn, Twitter/X)
• News articles featuring your photo
• Company websites with employee photos
• Personal blogs or websites
• Dating profiles
• Anywhere else your face appears online

The Illinois Subclass: Residents of Illinois have additional claims under BIPA and may receive enhanced benefits from the settlement.

Prior Clearview Settlements and Restrictions

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2022 ACLU Settlement

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In 2022, Clearview reached a separate settlement with the ACLU and partner organizations that imposed significant business restrictions:

Key Restrictions:

• Clearview cannot sell its database to most private companies and individuals
• Sales limited to official law enforcement and public sector contracts
• Created an opt-out mechanism for individuals to request removal from the database
• Barred from accepting new clients in Illinois for five years

What This Means: Even if you’re not part of the current class action, you can request that Clearview remove your biometric data from its system through the opt-out process established by the ACLU settlement.

Illinois BIPA: The Law Behind the Lawsuit

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Why Illinois Law Matters

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The Illinois Biometric Information Privacy Act (BIPA) is the nation’s strongest biometric privacy law and the primary legal basis for the Clearview class action.

BIPA Requirements:

• Companies must obtain informed written consent before collecting biometric identifiers
• Must provide written notice of collection purpose and retention period
• Cannot sell, lease, or profit from biometric data
• Must establish data retention and destruction policies

BIPA Damages:

• $1,000 per negligent violation
• $5,000 per intentional or reckless violation
• Attorney’s fees recoverable by prevailing plaintiffs

BIPA’s Unique Power: Private Right of Action

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Unlike most privacy laws, BIPA allows individuals to sue directly—not just government enforcement. This private right of action has made Illinois the center of biometric privacy litigation nationwide.

Major BIPA Settlements:

• Facebook (2022): $650 million for facial recognition tagging
• TikTok (2021): $92 million for biometric data collection
• Google (2022): $100 million for Photos facial recognition
• Clearview AI (2025): $51.75 million (equity value)

Implications for Biometric Privacy Law

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What This Settlement Signals

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1. BIPA Works Despite predictions that BIPA’s private right of action would be scaled back, the Clearview settlement demonstrates the law’s continued power to hold companies accountable for biometric privacy violations.

2. Creative Remedies for AI Companies The equity-based settlement structure may become a model for cases against cash-poor AI startups with massive potential liability. Rather than bankruptcy, this approach keeps companies operating while providing class members meaningful ownership.

3. Facial Recognition Under Scrutiny Combined with wrongful arrest lawsuits and growing state legislation, the Clearview case reflects intensifying legal and regulatory pressure on facial recognition technology.

Other States Following Illinois

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Several states have enacted or are considering BIPA-like biometric privacy laws:

What to Do If You’re a Class Member

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Step 1: Verify Your Status

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If you’ve posted photos online, you’re likely included in the class. The settlement covers anyone in the United States with facial images on publicly accessible websites.

Step 2: Monitor Settlement Developments

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Because the settlement provides equity rather than immediate cash, you should:

• Watch for notices about monetization events (IPO, acquisition, revenue distribution)
• Check the official settlement website for updates (when available)
• Preserve your contact information with the claims administrator

Step 3: Consider the Opt-Out Option

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If you prefer to pursue individual claims rather than participate in the class settlement, you may have the option to opt out. However:

• Individual BIPA claims are difficult without proving Illinois residency
• Individual plaintiffs bear litigation costs
• The equity settlement may ultimately prove more valuable than individual recovery

Step 4: Consult an Attorney If You Have Specific Concerns

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If you believe you suffered particularized harm from Clearview’s facial recognition (such as wrongful arrest or identity-related damages), you may have claims beyond the class settlement.

Frequently Asked Questions

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Related Resources

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Facial Recognition & Biometric Privacy

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• AI Facial Recognition Wrongful Arrests — Williams v. Detroit settlement, documented cases, civil rights claims
• California AI Liability Laws — State privacy protections including biometric laws

AI Privacy & Discrimination

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• AI Tenant Screening Discrimination — Algorithmic discrimination in housing
• AI Retail Surveillance False Arrests — In-store facial recognition liability

Legal Framework

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• AI Software as a Product — Strict liability for AI systems
• AI Legislation & Regulation Guide — Federal and state AI laws

Partner Sites

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• Biometric Privacy Standards — Professional standards for biometric data handling
• Find a Privacy Attorney — Law firm directory for biometric privacy cases