Tennessee woman sues Fargo and detective over arrest tied to AI facial recognition

Lipps, 50, was arrested in Tennessee on July 14, 2025, and stayed in custody until Dec. 24, when prosecutors dismissed the charges after her attorney produced bank records placing her in Tennessee at the time of the thefts, Valley News Live and InForum reported. She says she has never been to North Dakota. The fraud investigation involved suspects who used fake identification to obtain money from Fargo-area banks in April and May 2025.

The complaint, filed in U.S. District Court in North Dakota, brings five claims, including unlawful arrest, due process violations, false imprisonment and malicious prosecution. It alleges Heck pursued charges although Lipps did not match the suspect's physical description, and that he failed to disclose that the facial recognition result was based on a photo from the suspect's fake ID rather than surveillance footage. It also alleges Fargo police then had no policy, training or supervision covering the technology.

The city said it does not comment on pending litigation, InForum reported. MPR News noted that former Police Chief Dave Zibolski acknowledged in March that errors were made in the investigation.