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Financial Services Law Insights and Observations

District Court approves $15 million class action settlement over BIPA violations

Courts Class Action Privacy/Cyber Risk & Data Security BIPA State Issues Illinois

Courts

On February 18, the U.S. District Court for the Northern District of Illinois granted preliminary approval of a class action settlement, resolving allegations that a workplace management software company (defendant) violated the Illinois Biometric Information Privacy Act (BIPA) by collecting data without providing the requisite disclosures or obtaining informed written consent. According to the plaintiff’s motion for preliminary approval, the settlement class is comprised of nearly 172,000 Illinois employees who used the defendant’s biometric timekeeping devices at work and whose finger-scan data “was hosted” by the defendant. The defendant denied any violation of BIPA. Under the settlement agreement, the defendant will pay approximately $15 million into a non-reversionary settlement fund, and settlement class members, who need to file a valid claim to receive payment, are expected to receive between $290 and $580 each.