Clearview AI, a facial recognition startup, has reached a settlement in a federal lawsuit over privacy concerns. The agreement, potentially worth over $50 million, offers plaintiffs a share of the company’s future value instead of a traditional payout. This unique approach was necessitated by Clearview’s financial limitations. The settlement covers anyone whose images or data are in the company’s database and who lived in the U.S. since July 2017. While Clearview admits no liability, the deal requires a national campaign to notify potential plaintiffs. Some privacy advocates criticize the settlement, arguing it doesn’t address the core issue of consent for data collection. The agreement allows Clearview to continue its operations with federal agencies and law enforcement outside Illinois, where a separate settlement in 2022 restricted its activities.

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