The Strategist

Facebook pays $ 550 million to settle lawsuit around illegal biometric information collection

01/30/2020 - 10:08

Facebook agreed to pay $ 550 million to settle claims by Illinois residents who accused the company of illegally collecting biometric data from social network users, The New York Times reported citing Facebook CFO David Wehner. For several years, the company’s lawyers have been trying to strip the lawsuit of collective status, as well as completely terminate the proceedings.

“We decided to reach a settlement, since it is in the interests of our shareholders and the community to leave this topic in the past,” Mr. Wehner told investors. According to him, the amount of $ 550 is included in the expense column of the company's report for the fourth quarter of last year.

Recall, users of the social network Facebook sued the company in 2016. Plaintiffs claim that Facebook’s face recognition feature, which involves tagging photos, illegally collected and stored biometric data. Thus, according to them, the company violated state law on the confidentiality of biometric information.

Earlier, the company reported an increase in quarterly profits and users above forecasts. Facebook's net profit grew 7% from last year to $ 7.3 billion. Revenue grew 25% to $ 21 billion in the last three months of last year.