Clearview AI, a controversial facial recognition start-up, is facing a class-action lawsuit due to privacy invasion concerns. The company, which collected billions of photos from various online platforms to create a facial recognition app used by law enforcement agencies, has proposed a unique settlement to the plaintiffs. Instead of offering cash payments, Clearview AI is suggesting to give a 23 percent stake in the company to individuals whose faces are part of its database.
The lawsuits against Clearview AI have had a significant financial impact on the company, to the point where it might go bankrupt before the case reaches trial. In an attempt to find a creative solution, the lawyers for the plaintiffs have proposed this equity stake arrangement to provide the class members with a percentage of the company’s potential future value.
Individuals in the United States who have publicly posted photos of themselves online could potentially be part of this class and eligible for a stake in Clearview AI. The current value of the company is estimated to be $225 million, which would mean that the class members collectively hold a stake valued at around $52 million. If Clearview AI goes public or gets acquired, the class members who have submitted a claim form would receive a portion of the proceeds. Additionally, after two years, the class could choose to receive 17 percent of the company’s revenue.
This settlement proposal offers a unique opportunity for individuals who may have unknowingly had their faces used by Clearview AI to potentially benefit from the company’s future success. The outcome of this case could set a precedent for how privacy concerns related to facial recognition technology are addressed in the future. As technology continues to advance, the protection of individuals’ privacy rights becomes increasingly important, and this case highlights the complex legal and ethical issues surrounding the use of facial recognition technology in society.