Truckers reach $75M settlement with BNSF in Illinois biometrics dispute

A nearly five-year-old case involving truckers’ biometric information in Illinois is nearing an end with BNSF Railway Company reaching a multimillion-dollar settlement significantly lower than a judgment that was vacated.

On Monday, Feb. 26, a class of tens of thousands of truckers submitted a $75 million settlement for preliminary approval in an Illinois federal district court. If approved, the settlement will end a case where a jury found that BNSF violated Illinois’ Biometric Information Privacy Act.

With 46,500 truckers in the class, each individual is expected to receive approximately $1,000. That is much less than what they would have received with the original damages award. In October 2022, a jury found BNSF liable for violations of the Biometric Information Privacy Act. The court awarded the truckers $228 million, which totaled $5,000 per class member. However, the federal court vacated the damages award last June.

The dispute is based on the “auto-gate system” used at four BNSF facilities in Illinois. Beginning at least 10 years ago, truckers entering the railway company’s facilities had to register their fingerprints. To get through the auto-gate system, truckers had to scan their fingerprints. However, BNSF collected the biometric information in violation of state law.

In 2008, Illinois enacted the Biometric Information Privacy Act. The law requires companies to do the following when collecting biometric information such as fingerprints:

• Inform the subject in writing that biometric information is being collected or stored
• Inform the subject in writing of the specific purpose and length of term for which biometric information is being collected, stored and used
• Receive a written release executed by the subject of the biometric information

However, truckers who registered their fingerprints with BNSF never signed anything related to the collection of their biometric information.

According to the lawsuit, other rail operators gain informed written consent for the collection of biometrics in Illinois.

A class action lawsuit was filed against BNSF in 2019 for violating the Biometric Information Privacy Act. It would become the first case under Illinois’ biometrics law to go to trial.

In October 2022, a jury found that BNSF is liable for violations. The jury was asked only to determine the number of violations and intent. The verdict found 45,600 reckless or intentional violations. Companies that negligently violate the biometrics law can be fined $1,000 per violation, whereas intentional violations result in a $5,000 fine. Based on the jury verdict, the court entered a $228 million judgment in favor of the truckers.

However, the court would overturn its own judgment. In June 2023, the federal court granted BNSF’s motion to amend the damages award. Just four months after the trial, the Illinois Supreme Court published a decision on a separate Biometric Information Privacy Act. In its decision, the high court found that damages under the act are discretionary rather than mandatory. The act states that plaintiffs “may” recover damages.

Based on the fresh state Supreme Court decision, the federal district court ruled that BNSF is entitled to have a jury determine the appropriate amount of damages. Still upholding the jury’s finding of liability, the court ordered a new trial on the question of damages.

The $75 million settlement avoids the new trial. According to court documents, “the settlement will bring certainty, closure and valuable cash compensation to what has been contentious and costly litigation regarding BNSF’s alleged collection of individuals’ fingerprints at its Illinois facilities.” LL