One can file a civil case for false arrest. However, thanks to the qualified immunity cops enjoy coupled with the newness of the facial recognition technology, it will be very hard to prove that they obviously violated clearly established law. Maybe the cops will even point their fingers at the software.
Maybe he can go after the makers of the facial recognition software, but they can probably point their finger at the cops for using it wrong.
So, in any case, the guy will be left with a big legal bill.