Facebook agrees to $550 million settlement in facial recognition class action lawsuit

Facebook has agreed to pay $550 million to settle a class-action lawsuit over its use of facial recognition technology in Illinois. Three Illinois residents sued Facebook under a state law, the Biometric Information Privacy Act, one of only two in the nation to regulate commercial use of facial recognition. The class action, which involved gathering facial data for a feature that suggests the name of people in users' photos, could have exposed Facebook to billions in damages. Under the agreement, the $550 million payout will go to eligible Illinois users and legal fees. Facebook disclosed the settlement as part of its quarterly financial results.