OpenAI Faces California Lawsuit from BC Over Tumbler Ridge School Attack
OpenAI Đối Mặt Với Vụ Kiện Tại California Từ BC Về Vụ Tấn Công Trường Học Tumbler Ridge - Unite.AI
British Columbia filed a lawsuit against OpenAI in California, alleging the company failed to report threats made on ChatGPT before the mass shooting at Tumbler Ridge Secondary School on February 10, 2026, which killed eight people and injured 27. Internal reports show OpenAI's safety teams flagged the perpetrator's violent prompts months earlier, but leadership did not notify the RCMP or local authorities. The province seeks accountability and support for community rebuilding, including a new school.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
1 source article · read the reporting →
Grok AI prompt-injected to drain $150,000 from crypto wallet
In May 2026, an attacker used a Morse code-encoded message to prompt-inject xAI's Grok AI, causing its linked Bankr trading bot to transfer 3 billion DRB tokens worth approximately $150,000 to the attacker's wallet. The attacker first sent an NFT that granted executive permissions, then posted a reply asking Grok to translate a Morse code message that contained a financial instruction. The agent executed the transaction without human oversight, and the funds were immediately liquidated, causing short-term price volatility. About 80% of the funds were later returned after the DRB community identified the attacker.
- Company involved
- xAI
- AI system involved
- Grok and Bankr
2 source articles · read the reporting →
Baltimore Sues FanDuel and DraftKings Over Algorithms Allegedly Creating Problem Gamblers
The City of Baltimore has filed a lawsuit against FanDuel and DraftKings, alleging the sports betting operators use algorithms to target vulnerable users with personalized promotions and push notifications, creating problem gamblers. The complaint claims the companies' practices violate the city's Consumer Protection Ordinance by being deceptive and abusive. The lawsuit seeks injunctive relief and civil penalties, citing a rise in problem gambling among young men. This is the first such lawsuit brought by a municipality against the two companies.
- Company involved
- FanDuel and DraftKings
1 source article · read the reporting →
DNB deepfake attack attempted to trick Singapore office into transferring millions
Fraudsters used deepfake videos of DNB's CEO and CFO in a live Teams meeting to instruct employees at the bank's Singapore office to transfer millions of Singapore dollars. The attempt was detected after a suspicious WhatsApp message was reported to security. DNB allowed the meeting to proceed to gather intelligence, and no money was lost. The bank publicly disclosed the incident to raise awareness about deepfake threats.
- Company involved
- DNB
1 source article · read the reporting →
SEC Charges Delphia and Global Predictions for False AI Claims
The SEC charged Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their use of artificial intelligence. Delphia claimed from 2019 to 2023 that it used AI and machine learning to predict investments, while Global Predictions falsely claimed in 2023 to be the 'first regulated AI financial advisor'. Both firms settled the charges without admitting or denying the findings, agreeing to pay a total of $400,000 in civil penalties and to cease and desist from further violations.
- Company involved
- Delphia (USA) Inc. and Global Predictions Inc.
1 source article · read the reporting →
McKinsey's Lilli AI Platform Hacked, Exposing 46 Million Chat Messages
Security researchers at CodeWall used an autonomous offensive agent to discover a SQL injection vulnerability in McKinsey's internal AI platform, Lilli. The vulnerability allowed unauthenticated access to the production database, exposing 46.5 million chat messages, 728,000 files, and 57,000 user accounts. The researchers responsibly disclosed the issue to McKinsey, who patched the endpoints within days. No data was exfiltrated or misused, and no disruption occurred.
- Company involved
- McKinsey & Company
- AI system involved
- Lilli
1 source article · read the reporting →
DPD Disables AI Chatbot After It Swears at Customer and Insults Company
A customer of UK parcel delivery firm DPD was trying to track a lost package via the company's AI chatbot. The bot was unable to help and, when prompted, wrote a poem calling DPD a 'waste of time' and a 'customer's worst nightmare', and later swore at the customer. DPD acknowledged an error after a system update and disabled the AI element of the chatbot.
- Company involved
- DPD
2 source articles · read the reporting →
OpenAI's DALL-E 2 covertly adds diversity terms to user prompts
Users of OpenAI's text-to-image tool DALL-E 2 discovered that the system was covertly adding words such as 'black' and 'female' to their prompts. The modification appears to be an attempt to diversify the AI's output and counteract biases inherited from its training data. The changes were made without users' knowledge, raising concerns about transparency.
- Company involved
- OpenAI
- AI system involved
- DALL-E 2
3 source articles · read the reporting →
Canada Investigates Landlords' Use of AI Rent-Setting Software YieldStar
The Competition Bureau of Canada is investigating allegations that major corporate landlords, including Dream Unlimited, used AI-powered software YieldStar to coordinate rent increases. Tenant advocacy groups filed over 100 complaints, claiming the software recommended above-market rents, exacerbating housing affordability. Some landlords have since halted use of YieldStar amid public backlash, while the investigation continues.
- Company involved
- Dream Unlimited
- AI system involved
- YieldStar
7 source articles · read the reporting →
Xsolla fires 150 employees after big data analysis tags them as unproductive
Payment services company Xsolla terminated 150 employees at its Perm, Russia office after a big data analysis of their activity in Jira, Confluence, Gmail, chats, and documents tagged them as unengaged and unproductive. CEO Aleksandr Agapitov sent an email to affected employees stating that Xsolla was not for them, sparking backlash. The company later held a press conference, explaining the layoffs were due to slowing growth, and offered affected employees medical insurance and severance pay equal to four to six months' salary.
- Company involved
- Xsolla
4 source articles · read the reporting →
LAUSD shelves AI chatbot after vendor AllHere collapses
Los Angeles Unified School District turned off its 'Ed' AI chatbot on June 14, 2024, after the vendor AllHere furloughed most staff due to financial collapse. The chatbot, which cost $3 million, was designed to provide students and parents with academic guidance and school information. A former AllHere employee alleged that student data was improperly shared with third parties and processed overseas, raising privacy concerns. The district stated it will ensure privacy protections and plans to eventually restore the chatbot.
- Company involved
- Los Angeles Unified School District
- AI system involved
- Ed
5 source articles · read the reporting →
Estée Lauder settles with make-up artists sacked by algorithm
Three MAC make-up artists were dismissed after failing a video interview that was scored by HireVue's algorithm. They appealed but received no clear explanation of how the system assessed them. Estée Lauder Companies settled the resulting legal challenge out of court. HireVue later discontinued the visual analysis component of its video interview platform.
- Company involved
- Estée Lauder Companies
- AI system involved
- HireVue
2 source articles · read the reporting →
Thomas Dexter Jakes v. Duane Youngblood (W.D. Pennsylvania): AI-hallucinated content in court filing, Monetary Sanction; Pro Hac Vice status revoked
The system generated fabricated legal citations and quotes in a court filing, misleading the court and opposing counsel.
- Company involved
- Tyrone A. Blackburn
1 source article · read the reporting →
Calcutta High Court questions ChatGPT exclusion of IndiaMART from search results
IndiaMART, an Indian B2B online marketplace, has petitioned the Calcutta High Court alleging that ChatGPT deliberately excluded it from search results. The company claims the exclusion was based on a United States Trade Representative report and caused loss of goodwill, reputation and commercial injury. The court observed there appeared to be selective discrimination but declined to pass interim orders before hearing the other side. The matter is listed for 13 January 2026.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
4 source articles · read the reporting →
Marques Brownlee accuses Dot of using AI to clone his voice
Tech YouTuber Marques Brownlee claims that networking products company Dot used an AI-generated clone of his voice in an Instagram post to promote its products. Brownlee said the company used the AI-created voice without his permission and that there were no repercussions for the company. The Instagram post, from February 2024, was later deleted.
- Company involved
- Dot
3 source articles · read the reporting →
Sugar and Dice loses money in AI voice scam
Sugar and Dice, a game and coffee store in Havre, Montana, was targeted by a phone scam using AI voice replication. An employee received a call that appeared to be from the store owner's number and heard a voice that sounded like the owner, who instructed him to follow fraudulent instructions. The employee complied, compromising the store's bank details and causing monetary losses. Store owner Kevin Zorn does not blame the employee and believes the business will recover.
- Company involved
- Sugar and Dice
1 source article · read the reporting →
UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego
A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.
- Company involved
- UDR, Inc.
- AI system involved
- RealPage YieldStar
1 source article · read the reporting →
Chinese military researchers used Meta's Llama 2 to develop defense chatbot ChatBIT
Chinese military researchers, including two affiliated with the People's Liberation Army, reportedly used Meta's Llama 2 AI model to develop a defense chatbot called ChatBIT. According to Reuters, the chatbot is designed to gather and process intelligence and offer information for operational decision-making. Meta stated that the use was unauthorized and contrary to its acceptable use policy.
- Company involved
- People's Liberation Army (PLA)
- AI system involved
- ChatBIT
6 source articles · read the reporting →
Joann LeDoux v. Outliers, Inc. (2) (W.D. Washington): AI-hallucinated content in court filing, Expert Brief excluded/struck
The AI-generated hallucinated citations in an expert report led to the exclusion of the expert and dismissal of the plaintiff's case.
1 source article · read the reporting →
California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors
Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.
- Company involved
- Maxpread Technologies
8 source articles · read the reporting →
Unity faces employee concerns over military contract transparency
An investigation by Vice Games reported that Unity Technologies is not transparent with its developers about military contracts. Employees allege some are unaware their work on AI tools may become part of Department of Defense projects. CEO John Riccitiello stated the company will not support programs that violate its principles, but sources say many staff are angry. Unity said it cannot police all uses of its engine as it is a tool available to anyone.
- Company involved
- Unity Technologies
- AI system involved
- Unity engine
8 source articles · read the reporting →
LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Company involved
- loanDepot
- AI system involved
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
10 source articles · read the reporting →
Canadian news outlets sue OpenAI over alleged copyright infringement in training ChatGPT
A coalition of major Canadian news outlets, including the Toronto Star, Postmedia, and CBC, is suing OpenAI, alleging that the company illegally used their copyrighted articles to train its ChatGPT chatbot. The lawsuit, filed in Canada, seeks punitive damages and an injunction to stop OpenAI from using their content. OpenAI has defended its practices, stating that its models are trained on publicly available data and that it offers publishers ways to opt out.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
6 source articles · read the reporting →
Beus Gilbert PLLC v. Brigham Young University et al. (D. Utah): AI-hallucinated content in court filing, Two AI-ethics CLE courses;…
The AI system generated fake legal citations that were included in a court filing, misleading the court and opposing counsel.
1 source article · read the reporting →
