In re Clearview AI Consumer Privacy Litigation — Equity-Based Class Settlement (N.D. Ill.)
N.D. Ill. · In re Clearview AI, Inc. Consumer Privacy Litig., MDL 2967, No. 1:21-cv-00135 (N.D. Ill.)
A nationwide BIPA class action against Clearview AI settled in 2024 on an unusual basis: rather than cash, class members receive a 23 percent equity interest in Clearview, valued by plaintiffs at up to $51 million depending on company valuation. The arrangement reflected Clearview's inability to pay cash damages of the magnitude BIPA would require.
Technical detail
In re Clearview AI, Inc. Consumer Privacy Litigation, MDL No. 2967, No. 1:21-cv-00135 (N.D. Ill., final approval June 21, 2024; Judge Sharon Johnson Coleman). Settlement structure: class receives 23% post-money equity stake in Clearview (or 17% with cash sale option). Objections from 22 state AGs over inadequacy; approved over objections.
Who is protected: Nationwide class of individuals whose photos were scraped into Clearview's faceprint database
Who must comply: Clearview AI, Inc.
Key facts
| Jurisdiction | N.D. Ill. |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2024-06-21 |
| Citation | In re Clearview AI, Inc. Consumer Privacy Litig., MDL 2967, No. 1:21-cv-00135 (N.D. Ill.) |
| Topics | facial recognition · biometric data · consumer data privacy |
| Last verified | 2026-06-17 |
| Official source | In re Clearview AI Litigation — CourtListener MDL 2967 ↗ |
More AI rules in N.D. Ill.
- In re TikTok ($92M) · In effect
- Huskey v. State Farm · Blocked / in litigation
Related facial recognition rules elsewhere
- BIPA · In effect
- AI Video Interview Act · In effect
- New Hampshire HB 1688 (state-agency AI limits) · In effect
- Montana HB 178 (limits on government AI use) · In effect
- NYPD POST Act · In effect
- SF Facial Recognition Ban · In effect
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