7th Circuit Rules 2024 BIPA Damages Cap Applies Retroactively to Pending Cases

Published
Score
6

Why it matters

On April 1, 2026, the U.S. Court of Appeals for the Seventh Circuit unanimously held in Clay v. Union Pacific Railroad Co. (and consolidated cases) that the August 2024 amendment to Illinois' Biometric Information Privacy Act (BIPA) Section 20 applies retroactively to all pending cases, limiting plaintiffs to one recovery of statutory damages ($1,000 for negligent or $5,000 for intentional violations) per person per method of biometric collection, rather than per-scan damages that could yield millions or billions per case[1][2][3][4].

Key parties include plaintiffs (e.g., Clay, Willis), defendants Union Pacific Railroad Co. and two other companies facing class actions, lower federal district courts in Illinois (whose decisions were reversed), and Chief Judge Michael Brennan authoring the opinion. The amendment stemmed from 2023-2024 BIPA litigation fallout, including the Illinois Supreme Court's Cothron ruling clarifying claim accrual, which amplified per-scan damages exposure; Illinois legislators responded on August 2, 2024, without an explicit retroactivity clause, prompting district court splits resolved by this appeal[1][2][3][6].

Timeline: BIPA enacted 2008; massive class actions surged post-2019; Cothron (2023) spurred amendment; districts ruled prospective-only until 7th Circuit's reversal on April 1, 2026[1][3][4]. Newsworthy now as it slashes liability in hundreds of pending cases (e.g., one plaintiff sought $7.5M, classes billions), mandates jurisdiction reassessments, and shifts strategy for Illinois employers handling biometrics like fingerprints/facial scans—effective immediately on remand[1][2][3][6].

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