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Grandmother Falsely Accused of Bank Theft After Alleged AI Facial Recognition Match Sues for $10M
Lipps says facial-recognition software wrongly tied her to a bank fraud case, leading to 108 days in jail and a $10 million lawsuit.
On Tuesday, Angela Lipps filed a federal lawsuit in U.S. District Court in North Dakota against the city of Fargo and Fargo Police Department detective Lucas Heck, alleging flawed AI facial recognition technology led to her wrongful arrest.
In July 2025, U.S. Marshals arrested Lipps in Tennessee after West Fargo police flagged her as a suspect using facial recognition software. She was held for 108 days before charges were dismissed on Dec. 24, 2025, after bank records confirmed her innocence.
The complaint alleges Detective Heck failed to disclose the match used a fake ID photo rather than surveillance footage. Then-Fargo Police Chief Dave Zibolski later acknowledged the department made "investigative errors" in the case.
Lipps is seeking $10 million in damages and lost her residence, car, and personal property during detention. Her attorney, Eric Rice, said the amount "reflects the specific harm that happened to Angela."
The lawsuit seeks to "repair what has been broken" and establish better oversight of facial recognition technology. The case mirrors Robert Williams' wrongful arrest in Detroit, which prompted that city to stop making arrests based solely on facial recognition results.
An elderly woman from Tennessee, who had spent six months in prison due to an error in the facial recognition system, is now claiming $10 million in compensation.