A Tennessee grandmother is seeking $10 million in a federal lawsuit against the city of Fargo and a police detective, alleging she was wrongly accused of bank theft crimes in North Dakota and detained for six months based on an unreliable artificial intelligence facial recognition match. Angela Lipps, 50, a grandmother of five, was arrested in July 2025 while babysitting in Tennessee. She was held for several months before being extradited to North Dakota to face multiple bank theft charges.

The lawsuit claims that police improperly relied on AI facial recognition technology, which identified Lipps' social media photo as a potential lead in a bank theft investigation. The technology was reportedly used in connection with a fake ID used by a female suspect captured on surveillance footage during incidents at several Fargo-area banks. Lipps' charges were eventually dropped and she was released on Christmas Eve after providing evidence, including bank records, that she was in Tennessee at the time of the alleged crimes.

According to the complaint, Lipps did not resemble the suspect seen on surveillance video, differing in build, facial features, and tattoos. The lawsuit also states that Lipps had never been to North Dakota prior to her arrest. The complaint alleges that Detective Lucas Heck requested an arrest warrant for Lipps without conducting a thorough investigation or establishing sufficient probable cause, leading to her false arrest, imprisonment, and malicious prosecution.

Lipps hopes her case will prompt law enforcement to exercise greater caution and consider the potential harm of wrongful accusations as AI facial recognition technology becomes more widespread. The lawsuit contends that the Fargo Police Department failed to adequately train officers on the proper use of facial recognition technology and did not adequately supervise its officers' application of the technology in criminal investigations, despite awareness of the risks of wrongful detention and prosecution.

The complaint highlights that the AI facial recognition software identified Lipps' social media photo as a potential match. However, it notes that the suspect in the bank theft incidents used a fake ID. The lawsuit asserts that law enforcement officials knew that AI facial recognition technology should not be the sole basis for arresting and charging an individual, yet they allegedly ignored these concerns.

The Fargo Police Department has been aware of the potential for wrongful detentions and prosecutions stemming from the unsupervised use of facial recognition technology by officers. Despite this knowledge, the department allegedly refused to implement adequate supervision protocols for its officers using this technology in investigations, according to the lawsuit's allegations.

This incident raises broader questions about the accuracy and ethical deployment of AI facial recognition in law enforcement. As the technology becomes more integrated into investigations, concerns about privacy, bias, and the potential for misidentification continue to be debated among civil liberties advocates and legal experts.

The lawsuit seeks to hold the defendants accountable for the harm caused to Lipps, including the loss of her residence, car, and other property during her detention. It aims to serve as a call for greater scrutiny and responsible use of advanced surveillance technologies by police departments nationwide.