A nearly five-year-old privacy lawsuit has been resolved, allowing tens of thousands of citizens to receive cash in their Venmo accounts.
In 2020, journalist Rasheed Shabazz and former Oakland mayoral candidate Cat Brooks sued technology behemoth Thomas Reuters.
Thomas Reuters, a global technology company, runs the Clear data collection system.
The journalist and mayoral candidate revised their class-action complaint to state, “Because of CLEAR, Californians’ identities are up for sale without their knowledge, let alone consent.”
The company sells Clear, which is not the same as the airport security system Clear, to law enforcement, the government, and corporations.
When the system is sold, the buyers receive information on people’s addresses, DMV records, and relatives.
Californians are now being compensated for alleged breaches of privacy.
Every eligible applicant received a $156.09 Venmo payment from the “CLEAR Privacy Settlement Administrator.”
According to SF Gate, the company paid $27.5 million in August 2024 to settle the complaint.
Thomas Reuters denied any wrongdoing but agreed to pay the settlement.
In October, a judge in San Francisco approved the settlement, and those who believed they had been harmed by the case were eligible to join the class.
At the time of the settlement approval, lawyer Andre Mura told the outlet that anyone who met the California residency requirements would be eligible.
The settlement was promoted via social media, news articles, and other online advertisements.
Mura estimated that approximately 3% of eligible applicants would apply, resulting in 400,000 to one million people receiving a payout.
Mura estimated in October that the payout would range between $19 and $48 per person.
However, the payout is shockingly higher.
The court extended the filing deadline because there were so few applicants at the time.
Approximately 70% fewer than the estimated 400,000 plaintiffs filed a claim.
A mid-December filing stated that 125,000 to 150,000 claims would most likely be validated.
These claims would result in a payout of $129 to $155 per individual.
The administrator noted that 21.6 million claims were submitted by bots, causing them to be invalidated.
