The state of Texas has achieved a landmark $1.4 billion settlement with Meta Platforms Inc., resolving a lawsuit that accused the social media giant of illegally collecting Facebook users' biometric data through its discontinued facial recognition feature. This historic deal was announced by Texas Attorney General Ken Paxton and McKool Smith on Tuesday.

Meta $1.4B Deal : Largest Single-State Settlement

Attorney General Ken Paxton and McKool Smith emphasized the unprecedented nature of this settlement, labeling it "the largest settlement ever obtained from an action brought by a single state." The specifics were revealed after a 30-day stay requested in late May to finalize the agreement. McKool Smith attorneys Sam Baxter and Jennifer Truelove expressed their gratitude for the court's handling of the case, underscoring the importance of holding companies accountable for privacy violations in Texas.

"Companies operating in Texas must be held accountable, especially when the privacy of Texans is at risk," they said in a statement.

Meta $1.4B Deal : Upholding Biometric Privacy Laws

Paxton highlighted the significance of the settlement, stating it demonstrates Texas' commitment to holding major technology companies accountable. He noted that this deal marks the first lawsuit and settlement under the state's Capture or Use of Biometric Identifier Act (CUBI). "Any entity abusing Texans' sensitive data will be met with the full force of the law," Paxton said.

Zina Bash of Keller Postman LLC, also representing the state, called the settlement "unprecedented" and noted the novel legal approaches required to enforce Texas' biometric privacy law for the first time. Bash praised the rapid resolution of the case, emphasizing the state's urgency to protect residents' privacy.

Meta's Response and Legal Background

A Meta spokesperson expressed the company's satisfaction with the resolution and its interest in future business investments in Texas. The spokesperson noted the company's compliance with Texas' statute and openness about the facial recognition feature.

Paxton sued Meta in February 2022, alleging violations of CUBI by collecting users' biometric data without consent, unlawfully disclosing it to third parties, and failing to comply with data retention requirements. The facial recognition technology, introduced in 2010, was used to tag friends in photos and videos and was a feature in the Facebook app "Moments."

Meta stopped using the facial recognition system in November 2021, following a $650 million class settlement in Illinois over similar allegations. Texas launched its investigation into Facebook's technology in 2020, leading to the eventual lawsuit.

Legal Proceedings and Settlement Finalization

Before the settlement announcement, Meta and Texas were involved in an appellate dispute over whether CEO Mark Zuckerberg should be deposed. A Harrison County district court judge had ordered Zuckerberg to be available for deposition, leading to multiple appeals from Meta. The Texas Supreme Court removed the appeal from its docket after the settlement was announced.

The state of Texas was represented by a large team, including attorneys from the Office of the Texas Attorney General, McKool Smith, and Keller Postman LLC. Meta was represented by lawyers from Gibson Dunn & Crutcher LLP, Mayer Brown LLP, and Gillam & Smith LLP.

Meta $1.4B Deal: Landmark Settlement and Legal Precedent

Texas' $1.4 billion settlement with Meta is a significant victory for biometric privacy rights, setting a precedent for future actions against technology companies. This historic deal underscores the importance of safeguarding personal data and holding corporations accountable for privacy violations.