EAST ST. LOUIS - Global photography platform Geo Snapshot of Australia claims it might not survive if it can’t settle a suit alleging that its facial recognition violates Illinois law.
Geo Snapshot counsel Josh Kantrow of Chicago moved for a settlement conference in U.S. district court on Dec. 20, claiming the business would likely be bankrupt in six months.
Kantrow stated he made a settlement offer to plaintiff Adam Moomaw simultaneously with the filing of the motion.
Moomaw seeks to represent a class of persons Geo Snapshot photographed at Tough Mudder entertainment events in Illinois.
Illinois law on biometric privacy law provides penalties up to $1,000 for each negligent violation and up to $5,000 for every reckless violation.
Kantow attached a declaration of Geo Snapshot chief executive Andy Edwards stating the business lost money every year since its inception totalling about $1.5 million.
“This lawsuit, however, is preventing GeoSnap from obtaining significant new funding while this case is pending," Edwards wrote.
“Should a judgment be made against GeoSnap, satisfying the judgment would not be possible because GeoSnap has no real assets to speak of and runs currently at a net loss.”
He declared Geo Snapshot’s insurer provides defense on an eroding policy, “where the limits of insurance reduce with every dollar spent on defense costs including attorneys’ fees.”
“The above policy has roughly $1.1 million in remaining liability limits according to the latest update from my attorneys and insurance adjuster," he wrote.
Kantrow stated in his motion that there would be no possible recovery for the class.
“Additionally, if GeoSnap is forced into bankruptcy a new concern may arise about what would happen to the alleged biometric data plaintiffs claim GeoSnap collected," he wrote.
“This is significant because the Biometric Information Privacy Act itself was created in response to and to prevent this uncertainty.
“Plaintiffs and the putative class members might avoid this uncertainty by reaching a settlement in this case.
“There remains a significant portion of the GeoSnap insurance policy that can be used to try and settle the case on practical and reasonable terms.
“However, there is no question this opportunity will quickly disappear.”
District Judge David Dugan granted the motion on Dec. 21 and assigned Magistrate Judge Mark Beatty to preside over the settlement conference.
Dugan denied a motion to dismiss the suit for lack of jurisdiction in March, finding physical presence is not necessary for a defendant to have sufficient contacts with Illinois.
He found Geo Snapshot decided to enter into a contract with Tough Mudder and operate a website hosting thousands of photographs from Illinois events.
Former St. Louis lawyer John Driscoll now in Puerto Rico and Matthew Limoli of his firm in North Carolina represent Moomaw.