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Facebook increases settlement offer to $650 million in facial recognition lawsuit

Arhama AltafWeb Editor

02nd Aug, 2020. 11:25 am
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Facebook raised its settlement offer by $100 million to $650 million related to a lawsuit that claimed it illegally collected and stored biometric data for millions of users without their consent.

According to the details, Facebook has reached a $550 million settlement in January regarding the same lawsuit, which started in 2015, when several users accused the company of violating the state’s Biometric Information Privacy Act in collecting biometric data.

Earlier, Facebook disclosed the settlement as part of its quarterly financial results, in which it took a charge on the case.

The sum amounted to a rounding error for Facebook, which reported that revenue rose 25 percent to $21 billion in the fourth quarter, compared with a year earlier, while profit increased 7 percent to $7.3 billion.

David Wehner, Facebook’s chief financial officer, noted in an earnings call with investors that the settlement added to the social network’s rising general and administrative costs, which increased 87% from a year ago.

“We decided to pursue a settlement as it was in the best interest of our community and our shareholders to move past this matter,” a Facebook spokesman said in a statement.

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