FILE - Hoan Ton-That, CEO of Clearview AI, demonstrates the company’s facial recognition software using a photo of himself in New York on Tuesday, Feb. 22, 2022. Facial recognition startup Clearview AI has reached a settlement in a lawsuit alleging its massive collection of images violated the subjects’ privacy rights. Attorneys estimate the deal could be worth more than $50 million.
Judge Sharon Johnson Coleman, of the Northern District of Illinois, gave preliminary approval to the agreement Friday. Clearview does not admit any liability as part of the latest settlement agreement. Attorneys representing the company in the case did not immediately reply to email messages seeking comment Friday.Federal Trade Commission refers complaint about TikTok’s adherence to child privacy law to the DOJ“Clearview did not have anywhere near the cash to pay fair compensation to the class, so we needed to find a creative solution,” Loevy said in a statement.
“Clearview did not have the funds to pay a multi-million-dollar judgment,” he is quoted in the filing. “Indeed, there was great uncertainty as to whether Clearview would even have enough money to make it through to the end of trial, much less fund a judgment.”