Clearview AI Privacy Equity Deal Could Collapse on Process Issue

Clearview AI’s potentially unique class action settlement to resolve claims that it improperly collected and sold Americans’ biometric data without consent faced headwinds Wednesday during Seventh Circuit oral arguments over whether the nationwide class received adequate representation.

Loevy & Loevy, lead class counsel, and Clearview AI explained that the settlement provides the class a roughly 23% stake in the privately owned facial recognition platform. The settlement fund could be funded via several events, including an initial public offering or a liquidation, and a Settlement Master could also sell the stake to a third party or make a cash demand of ...