Facial recognition firm Clearview AI has put forward a proposal to settle a class action lawsuit by offering a 23 percent ownership stake, in the company to individuals whose imagesre part of its extensive database. This move comes as the company grapples with challenges stemming from legal battles as court records indicate that without this settlement Clearview AI may be at risk of going bankrupt.
The class action lawsuit, which spans states alleges that Clearview AI infringed on privacy rights by collecting and storing billions of images from accessible online sources. The companys database reportedly houses, than 30 billion images. Has been utilized by various law enforcement entities, including the FBI and the Department of Homeland Security.
Settlement Details and Potential Payout
If a federal judge gives the light the settlement could reach a minimum of $50 million with lawyers getting, up to 39 percent of the total amount. However individual payouts might end up being quite small since the settlement would have to be divided among a number of Americans whose photos are likely stored in Clearview AIs database. Estimates indicate that if one third of the U.S. Population is affected each person could expect around 27 cents if the company goes public or gets acquired.
The proposed settlement has sparked discussions on privacy value and the repercussions of Clearview AIs actions. The company has been dealing with issues and penalties such as fines and restrictions on its operations, in multiple countries. Critics argue that the settlement may not effectively address the privacy concerns raised by the companys practices and that providing compensation to individuals does little to make up for any harm caused by unauthorized use of their biometric information.
