Facial recognition startup Clearview AI settles privacy suit

CHICAGO: Facial recognition startup Clearview AI reached a settlement Friday in an Illinois lawsuit alleging its massive photographic collection of faces violated the subjects’ privacy rights, a deal that attorneys estimate could be worth more than $50 million.

But the unique agreement gives plaintiffs in the federal suit a share of the company’s potential value, rather than a traditional payout. Attorneys’ fees estimated at $20 million also would come out of the settlement amount.