The litigation could potentially bankrupt Clearview AI before the case reaches trial. The proposed settlement would give almost everyone in the U.S. who has a publicly posted photo online a share in the company, currently valued at $225 million. If Clearview goes public or is acquired, those who submitted a claim form would get a portion of the proceeds. Alternatively, the class could sell its stake or opt to collect 17% of Clearview’s revenue after two years.
Key takeaways:
- Clearview AI, a facial recognition start-up, has agreed to a settlement in a class-action lawsuit over invasion of privacy, offering a 23 percent stake in the company to Americans whose faces are in its database.
- The company scraped billions of photos from the web and social media sites to build a facial recognition app used by law enforcement agencies.
- The settlement would collectively give the members a 23 percent stake in Clearview AI, which is valued at $225 million, meaning the stake would be worth about $52 million.
- If the company goes public or is acquired, those who had submitted a claim form would get a cut of the proceeds. Alternatively, the class could sell its stake or opt to collect 17 percent of Clearview’s revenue after two years.