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Clearview AI Settlement: What the Proposed 23% Equity Deal Means Now

Clearview AI’s proposed 23% equity-linked settlement did not grant individuals stock, and its approval was vacated in July 2026. The old claim portal is closed; no new claim window is established.
From TheFinanceBase Team4 min to read
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No current payout is available under the proposed Clearview AI settlement. The deal tied class compensation to the value of 23% of the company in specified circumstances, but it did not give each person Clearview stock. On July 13, 2026, the Seventh Circuit vacated approval and sent the case back to the district court. As of August 18, 2026, readers should not assume the deal is final or that a new claim process is open.

What “Clearview scanned your face” means

The lawsuit concerned photographs found on publicly accessible webpages, not necessarily photos taken by Clearview or a live scan through someone’s phone. The complaint alleged that Clearview collected online images, used artificial intelligence to derive facial geometry—often described as a facial vector—and stored the resulting information in a searchable database. A customer could then submit another photo and search for matching images and their source webpages. The settlement notice describes the alleged conduct; it does not establish that Clearview retained any particular person’s image. Read the long-form notice.

  • Photograph: An image of a face posted online.
  • Facial vector: A mathematical representation derived from facial features; it is not the same thing as the original photograph.
  • Searchable database: A system linking facial information with images and their online sources.
  • Later search: A customer may submit a different photo to look for potential matches.

Clearview and the other defendants denied the allegations. The proposed settlement was not an admission of wrongdoing. The settlement FAQ states those qualifications.

How the proposed 23% deal would have worked

The proposed agreement described a class-wide settlement fund tied to the value of 23% of Clearview’s shares as of September 6, 2023. It did not promise an immediate payment, and an IPO was not the only possible trigger.

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Proposed trigger Payment mechanism under the proposed agreement
IPO A settlement fund based on the value of 23% of Clearview’s shares as of September 6, 2023, multiplied by the IPO price.
Certain merger, sale, or liquidation A cash equivalent tied to what the class would have received from the 23% stake immediately before the qualifying transaction.
Neither an IPO nor a qualifying transaction by December 31, 2027 The settlement master could demand a cash payment equal to 17% of qualifying revenue from final approval through the demand date.

These were proposed terms, not an operative payment obligation after the appellate ruling. The official FAQ explains the triggers.

Why 23% did not mean 23% ownership for each person

The 23% figure referred to a collective stake used to calculate potential class compensation. It was not a grant of personal shares, stock certificates, voting rights, dividends, or a tradable security to every claimant. Under the proposal, money would flow through a settlement fund and be distributed under an allocation plan.

Even if a trigger established a fund, individual payments would depend on the net amount available, the number of approved claims, class and subclass allocation rules, and deductions such as attorneys’ fees, expenses, and court-approved incentive awards. Future investment could also dilute the referenced stake. The Seventh Circuit described the proposal as equity-like monetary relief, not individual stock ownership. Read the court’s opinion.

A reference to company equity does not establish a fixed cash value by itself. An IPO price, a qualifying transaction, or the agreement’s other mechanism would have been needed to calculate a payment. A sale can also involve debt, preferred rights, or transaction costs, and a large class could divide a net fund into modest individual amounts. No reliable per-person estimate is established by the proposal.

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Who the proposed settlement covered

The proposed nationwide class generally covered people who resided in the United States during the defined class period and whose facial images, facial-vector data, or other biometric data were in Clearview’s database, subject to the formal class definitions. It also provided for subclasses in Illinois, California, New York, and Virginia, with different allocation rules partly tied to state-law claims. The district-court settlement description sets out the class and subclass structure.

  • A publicly viewable photo alone does not prove that Clearview retained it or that a person meets a legal class definition.
  • Receiving a notice does not establish that Clearview violated the law.
  • Some people may fit more than one class or subclass; the formal definitions and any future court-approved notice control.
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Why the settlement approval was vacated

The district court approved the settlement, but on July 13, 2026, the Seventh Circuit vacated that approval and remanded the case for further proceedings. Its concern was procedural and focused on representation and allocation: certain state subclasses received substantially greater benefits, while no representative of the nationwide class endorsed that allocation. The appellate court did not hold that equity-linked monetary relief is inherently impermissible. The Seventh Circuit opinion explains the ruling.

Vacating approval means the proposed settlement is not currently a final, court-approved deal. It does not decide that the case can never settle. The parties may pursue a revised agreement or continue litigating; the ultimate outcome is not established.

Can you file a claim now?

The old settlement website lists October 25, 2024, as the prior claim deadline and marks the claim process closed. But that old deadline does not establish what a future settlement or court order would require now that approval has been vacated. As of August 18, 2026, there is no announced new claim window in the materials cited here. Check the official closed-claims page and Public Citizen’s case update for status information.

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  • Use the official settlement website and court or case updates for any new notice or deadline.
  • Do not assume that doing nothing, filing under the old process, or having received a notice automatically creates a live claim under a future agreement.
  • Do not pay anyone who promises guaranteed Clearview money, and do not send identity documents or other sensitive information to unofficial claim sites.
  • Keep any notices you received. If you need advice about your individual rights, consult a lawyer; a future notice would govern any choices such as participating, objecting, or opting out.

The official documents page provides settlement materials. For the current procedural status, consult the court’s docket or reliable case updates rather than social-media claims.

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