Meta agrees to $1.4B settlement with Texas in privacy lawsuit over facial recognition

precedent

A handful of Houston startups will be bouncing back and forth to Austin for the second annual MassChallenge Texas accelerator. Photo via Getty Images

Meta has agreed to a $1.4 billion settlement with Texas in a privacy lawsuit over allegations that the tech giant used biometric data of users without their permission, officials said Tuesday.

Texas Attorney General Ken Paxton said the settlement is the largest secured by a single state. In 2021, a judge approved a $650 million settlement with the company, formerly known as Facebook, over similar allegations of users in Illinois.

“This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights,” Paxton, a Republican, said in a statement.

Meta said in a statement: “We are pleased to resolve this matter, and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers.”

Filed in 2022, the Texas lawsuit said that Meta was in violation of a state law that prohibits capturing or selling a resident's biometric information, such as their face or fingerprint, without their consent.

“This is by far the biggest state governmental privacy settlement in history,” Chicago-based class action attorney Jay Edelson said in an email. Edelson's firm filed the lawsuit that settled for $650 million with Meta. The only other larger claim is the Federal Trade Commission's $5 billion settlement with the company in 2019.

To date, Meta has now paid over $2 billion in settlements for biometric privacy claims, according to Edelson. “That is a huge signal to other companies that they should be extremely careful if they want to trade in individuals' biometric information,” he said.

The company announced in 2021 that it was shutting down its face-recognition system and delete the faceprints of more than 1 billion people amid growing concerns about the technology and its misuse by governments, police and others.

At the time, more than a third of Facebook’s daily active users had opted in to have their faces recognized by the social network’s system. Facebook introduced facial recognition more than a decade earlier but gradually made it easier to opt out of the feature as it faced scrutiny from courts and regulators.

Facebook in 2019 stopped automatically recognizing people in photos and suggesting people “tag” them, and instead of making that the default, asked users to choose if they wanted to use its facial recognition feature.

Texas filed a similar lawsuit against Google in 2022. Paxton’s lawsuit says the search giant collected millions of biometric identifiers, including voiceprints and records of face geometry, through its products and services like Google Photos, Google Assistant, and Nest Hub Max. That lawsuit is still pending.

The $1.4 billion is unlikely to make a dent in Meta’s business. The Menlo Park, California-based tech made a profit of $12.37 billion in the first three months of this year, Its revenue was $36.46 billion, an increase of 27% from a year earlier. Meta is scheduled to report its second-quarter earnings results on Wednesday.

Meta’s stock slipped $4.06 to $461.65 Tuesday, a decline of less than 1%.

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Facebook is piloting a new tool at one of Houston's universities. Photo courtesy of Rice University

Facebook taps Houston college campus for new tool on its app

calling all underclassmen

Facebook launched as a social media platform solely for college students back in 2004. Since then, college students have gradually moved away from Mark Zuckerberg's baby in favor of platforms like Instagram, Snapchat, and TikTok.

Now, in a bid to once again attract college students, Facebook is returning to its roots with the introduction of a dedicated "college-only space" within the social media app. The social media giant is piloting Facebook Campus at 30 U.S. colleges and universities, including Houston's Rice University.

Harvard University, where Zuckerberg hatched Facebook, isn't among the pilot campuses. The only other Texas school in the pilot group is Stephen F. Austin University in Nacogdoches.

"While Facebook's early days saw it targeting Ivy League schools, the company says these first Facebook Campus schools were selected for diversity's sake. That is, diversity of the student population, diversity of geography, and diversity of school specialties (like liberal arts). They also represent a mix of public and private schools," the TechCrunch news website reports.

Facebook says a student's profile in the Campus section will differ from a student's profile on the main Facebook site. To create a Campus profile, a student must provide their college email address and graduation year. A student has the option to add information like major, courses, and hometown.

"Your name, profile photo, cover photo, and hometown from your Facebook profile will be added to your Campus profile, but you can edit or remove your hometown from your Campus profile if you'd like," Facebook tells prospective users.

Once a Campus profile is set up, a user can explore groups and events specific to their school, and connect with classmates who share similar interests. Only people on the Campus platform can view content posted there.

Features of Facebook Campus include:

  • Campus-specific news feed where students can read updates about classmates, groups, and events. They also can establish study groups, plan virtual concerts, or seek advice.
  • Directory of classmates at each campus. "Like in the early days when Facebook was a college-only network, students can find classmates by class, major, year, and more," Facebook says.
  • Real-time chat rooms for dorms and campus groups.

"This year, students across the country are facing new challenges as some campuses shift to partial or full-time remote learning, so it's more important than ever to find a way to stay connected to college life," Facebook says in a post about Facebook Campus. "College is a time for making new friends, finding people who share similar interests and discovering new opportunities to connect — from clubs to study groups, sports, and more."

With the Campus feature, Facebook hopes to lure younger users back to the platform in a setting where their parents and grandparents can't spy on them.

In the fall of 2019, U.S. teens named Snapchat as their favorite social media app (44 percent), followed by Instagram (35 percent) and TikTok (4 percent), according to Statista. Just 3 percent of teens cited Facebook as their favorite social media app.

By comparison, 42 percent of teens rated Facebook as their favorite social media network in 2012, followed by Twitter (27 percent) and Instagram (12 percent). Snapchat and TikTok had not yet been created.

"Most of us have [Facebook], we just never use it," one teen told CNBC last year. "It's not our thing."
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Texas universities develop innovative open-source platform for cell analysis

picture this

What do labs do when faced with large amounts of imaging data? Powerful cloud computing systems have long been the answer to that question, but a new riposte comes from SPACe.

That’s the name of a new open-source image analysis platform designed by researchers at Baylor College of Medicine, Texas A&M University and the University of Houston.

SPACe, or Swift Phenotypic Analysis of Cells, was created to be used on standard computers that even small labs can access, meaning cellular analysis using images produced through cell painting has a lower barrier to entry than ever before.

“The pharmaceutical industry has been accustomed to simplifying complex data into single metrics. This platform allows us to shift away from that approach and instead capture the full diversity of cellular responses, providing richer, more informative data that can reveal new avenues for drug development,” Michael Mancini, professor of molecular and cellular biology and director of the Gulf Coast Consortium Center for Advanced Microscopy and Image Informatics co-located at Baylor College of Medicine and TAMU Institute for Bioscience and Technology.

SPACe is not only accessible because of its less substantial computational needs. Because the platform is open-source, it’s available to anyone who needs it. And it can be used by academic and pharmaceutical researchers alike.

“The platform allows for the identification of non-toxic effects of drugs, such as alterations in cell shape or effects on specific organelles, which are often overlooked by traditional assays that focus largely on cell viability,” says Fabio Stossi, currently a senior scientist with St. Jude Children’s Research Hospital, the lead author who was at Baylor during the development of SPACe.

The platform is a better means than ever of analyzing thousands of individual cells through automated imaging platforms, thereby better capturing the variability of biological processes. Through that, SPACe allows scientists an enhanced understanding of the interactions between drugs and cells, and does it on standard computers, translating to scientists performing large-scale drug screenings with greater ease.

"This tool could be a game-changer in how we understand cellular biology and discover new drugs. By capturing the full complexity of cellular responses, we are opening new doors for drug discovery that go beyond toxicity,” says Stossi.

And the fact that it’s open-source allows scientists to access SPACe for free right now. Researchers interested in using the platform can access it through Github at github.com/dlabate/SPACe. This early version could already make waves in research, but the team also plans to continually improve their product with the help of collaborations with other institutions.

The Ion names new coworking partner for Houston innovation hub

Where to Work

Rice University subsidiary Rice Real Estate Co. has tapped coworking company Industrious as the new operator of the Ion’s 86,000-square-foot coworking space in Midtown. Industrious replaces WeWork-owned Common Desk in that role.

The Ion, owned by Rice Real Estate and located at 4201 Main St., is a 266,000-square-foot office building and innovation hub in the 16-acre Ion District.

Features of the coworking space include private suites and offices, dedicated desks, phone booths and conference rooms. In 2022, Common Desk said it was expanding the space by 28,000 square feet, bringing it to the current size.

“(Industrious’) unparalleled expertise in delivering quality, hospitality-driven workspaces complements our vision of creating a world-class ecosystem where entrepreneurs, corporations, and academia converge to drive innovation forward,” Ken Jett, president of Rice Real Estate, said in a statement.

Natalie Levine, senior manager of real estate at Industrious, says her company will work with Rice Real Estate “to continue to position the Ion as an invaluable contributor to the growth of Houston’s innovation community.”

Dallas-based commercial real estate services company CBRE said Jan. 14 that it had agreed to acquire Industrious in a deal valued at $400 million.

The Ion is Industrious’ second location in Houston. The company’s other local coworking space is at 1301 McKinney St.

Office tenants at the Ion include Occidental Petroleum, Fathom Fund, Activate, Nauticus Robotics, and Carbon Clean.

Texas ranks among the 5 best states to start a business in 2025

Best for Biz

As one of the largest states in the U.S., it's no surprise Texas is big on business and entrepreneurship. Now the state is earning new praise among WalletHub's 2025 list of "Best & Worst States to Start a Business."

The Lone Star State claimed the No. 4 spot in the report's rankings, proving that Texas is in a much better business shape than it was last year when it earned No. 8 in WalletHub's annual report.

The study compared all 50 states across 25 metrics to determine the best places to start, grow, and find success with a new business. Factors that were considered include the number of startups per capita, job growth rates, financing accessibility measures, labor costs and corporate tax rates.

The three states to outperform Texas in the 2025 report are Florida (No. 1), Georgia (No. 2), and Utah (No. 3). Idaho rounded out the top five.

Across the study's three main categories, Texas performed the best in the "business environment" category, earning No. 1 nationally. This section compares the states based on five-year business survival rates, average business revenues growth and more.

Texas ranked No. 12 in the nationwide comparison of "access to resources" – which covers working age population growth, venture investment amounts per capita and other means – and earned a fair No. 34 in the report's "business costs" ranking.

But Texas can still do better with its business friendliness to reclaim a top-three overall ranking, which the state last earned in 2023.

WalletHub analyst Chip Lupo said in the report that it is imperative for potential new business owners to establish their enterprise in a place that can maximize their ability to succeed.

"Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living," Lupo said. "The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally."

Houston has also proven to be at the top of the destination list for entrepreneurs who are looking for their next venture.

The top 10 best states to start a new business in 2025 are:

  • No. 1 – Florida
  • No. 2 – Georgia
  • No. 3 – Utah
  • No. 4 – Texas
  • No. 5 – Idaho
  • No. 6 – Oklahoma
  • No. 7 – Nevada
  • No. 8 – Colorado
  • No. 9 – Arizona
  • No. 10 – Kentucky
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This story originally appeared on our sister site, CultureMap.

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