Facebook Inc. proposed increasing its settlement offer to US$650 million to resolve a lawsuit in which users claim the company illegally gathered biometric data through a photo-tagging tool.

A federal judge had voiced concern that the original US$550 million proposal was insufficient to compensate millions of Illinois users on the social network who are covered by the class-action privacy case.

U.S. District Judge James Donato in San Francisco said at a hearing Thursday that the new proposal seemed “incrementally better,” though he hasn’t approved it yet.