North Dakota Woman Seeking $10,000,000 After AI Facial Recognition Error Led to Jail

Seeking $10 million in damages, a Tennessee woman is suing after AI facial recognition wrongly tied her to a North Dakota bank fraud probe and left her behind bars for months.

Angela Lipps, 50, filed the federal lawsuit Tuesday against the City of Fargo and the detective who used the software, reports KFGO.

Agents arrested her on July 14th, 2025, in her home state, and she spent about six months in jails in Tennessee and at the Cass County Jail before release in late December 2025 after bank records showed she was in Tennessee during the crimes.

The complaint says she had never been to North Dakota until her arrest, that officers ignored known flaws in the AI tool, and that she was denied medications and dentures while jailed.

Lipps also claims she was released without a way home and lost her house, car and belongings.

She alleges wrongful arrest, malicious prosecution and violations of her Fourth and Fourteenth Amendment rights.

Former Fargo Police Chief Dave Zibolski defended the process in March 2026.

“Probable cause is that first level to issue charges, that was done in this case. The State’s Attorney reviewed the investigation, issued the charges based on probable cause and referred it for warrant to a judge. The judge in this case reviewed it for probable cause, issued the warrant and also authorized extradition, which doesn’t happen in every case. This is the criminal justice system at work, and that’s the process that was followed in Ms. Lipps’ investigation.”

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The post North Dakota Woman Seeking $10,000,000 After AI Facial Recognition Error Led to Jail appeared first on The Daily Hodl.