Thomson Reuters CLEAR Settlement: What Californians Should Know

A federal judge recently granted final approval to a $27.5 million settlement that resolves allegations against Thomson Reuters, the parent company of Reuters News, over its controversial CLEAR database. The case alleged that Thomson Reuters harvested millions of Californians’ personal and confidential information, bundled it into profiles, and sold access to those records — all without proper consent.

Thomson Reuters Settlement Details & Payouts

The settlement class includes anyone who has lived in California since December 3, 2016. These individuals were eligible to seek compensation from the $27.5 million fund. Initially, most claimants were expected to receive payouts ranging from $19 to $48. The filing deadline was December 6, 2024.

However, participation was far lower than anticipated. Fewer than 1% of eligible class members actually filed claims. While this low response disappointed the presiding judge, U.S. Senior District Judge Edward Chen, it significantly changes the math. Because fewer people are splitting the settlement fund, those who did submit claims will likely receive much larger payments than first projected.

The Lawsuit Against CLEAR

The class action originated in 2020, filed by Cat Brooks and Rasheed Shabazz. Brooks and Shabazz accused Thomson Reuters of compiling Californians’ photos, addresses, family connections, and other identifiers into its CLEAR platform and then selling access to private entities, government agencies, and law enforcement groups. CLEAR is marketed as an investigative tool that assists professionals in background checks, fraud investigations, and public records research.

Plaintiffs argued that this practice violated the California Consumer Privacy Act (CCPA), which requires businesses to inform individuals when their personal information is being sold to third parties.

Court Rejection of Thomson Reuters’ Defense

Throughout the litigation, Thomson Reuters contended that its data collection and sale served the public by making investigative information more accessible to law enforcement and professionals. The company argued that compiling public and commercial records into one database provided a net public benefit.

Judge Chen was not persuaded, holding that privacy rights and consumer protections outweighed Thomson Reuters’ claimed justifications. This ruling opened the door for a settlement rather than prolonging litigation.

Why This Settlement Matters

The Thomson Reuters CLEAR settlement highlights several key issues about privacy rights and the growing use of data aggregation tools:

• Consent is critical: Even if much of the information comes from public records, collecting, bundling, and selling it in bulk without disclosure raises privacy concerns.
• AI and automation amplify risks: Platforms like CLEAR can draw connections across databases in ways individuals never consented to, making private lives far more transparent.
• Consumer protection laws have teeth: California’s CCPA played a central role in this case, signaling that companies operating in the state must tread carefully when monetizing personal data.

The case also illustrates the power imbalance between corporations and consumers: millions of people may be affected by a product like CLEAR, yet only a small percentage file claims, often because they are unaware of the settlement or do not understand the risks posed by the misuse of their data.

Why Hire The Lyon Firm for AI Privacy and Data Misuse Claims

Cases like the Thomson Reuters CLEAR litigation show how powerful companies are building business models around data collection and surveillance. When this happens, individuals often lack the resources to fight back. That’s where an experienced privacy attorney can help.

The Lyon Firm represents plaintiffs in AI, privacy, and data misuse lawsuits, and is equipped to handle complex cases involving both individual and class-wide claims. The firm offers:

• Experience with privacy statutes like the CCPA and other consumer protection laws.
• Technical knowledge of AI-driven data platforms that scrape, aggregate, and monetize sensitive information.
• Proven advocacy in data breach and privacy litigation, helping victims secure compensation while also pushing for reforms that protect future consumers.
• Client-focused support, ensuring individuals understand their rights and options when their personal data has been exploited.

If you believe your personal information has been collected or sold without your consent, the Lyon Firm can evaluate your case, explain your rights under privacy law, and pursue claims to hold data brokers and tech companies accountable.