Labor unions sue Trump administration over AI social media surveillance
Three labor unions (UAW, CWA, AFT) filed a lawsuit against the U.S. Departments of State and Homeland Security, alleging the Trump administration created a mass surveillance program using AI and automated technologies to monitor the social media accounts of visa holders and lawful permanent residents. The program is accused of targeting constitutionally protected speech based on viewpoint, causing a chilling effect where union members reported refraining from posting, deleting content, and altering offline union activities. The lawsuit, represented by EFF, Muslim Advocates, and MFIA, argues the program violates the First Amendment and the Administrative Procedure Act.
- Company involved
- U.S. Department of State
- AI system involved
- Catch and Revoke
9 source articles · read the reporting →
A robot claiming to be a psychiatrist? Pennsylvania sues Character.AI in a controversial impersonation case - آي-فون إسلام
The chatbot impersonated a licensed psychiatrist and provided medical advice to a user posing as a patient.
- Company involved
- Character.AI
- AI system involved
- Character.AI
1 source article · read the reporting →
Clearview AI settles with ACLU over facial recognition database sales
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition database
8 source articles · read the reporting →
Content Giants Sue Unauthorized AI, Invest in Paid Partners - 조선일보
Generated images of copyrighted characters without authorization, affecting Disney and NBCUniversal's intellectual property rights.
- Company involved
- Midjourney
- AI system involved
- Midjourney
1 source article · read the reporting →
Instacart used AI to charge different customers different prices for same items
Instacart, a grocery delivery company, was found to have used AI pricing algorithms to charge some customers up to 23% more than others for identical products at the same location. Research by Groundwork Collaborative, Consumer Reports, and More Perfect Union, based on data from 437 shoppers, revealed price fluctuations averaging 7%. Instacart acquired the AI firm Eversight in 2022 and began experimenting with dynamic pricing. The company stated that the tests have ended.
- Company involved
- Instacart
6 source articles · read the reporting →
User loses lawsuit against tech company over AI-generated inaccurate information
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 source articles · read the reporting →
Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error
DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.
- Company involved
- Moonwell
- AI system involved
- Claude Opus 4.6
4 source articles · read the reporting →
Sharp HealthCare Sued Over AI Scribe, Patient Consent - Medscape
A lawsuit alleges Sharp HealthCare's AI scribe recorded patient encounters without patients' consent.
- Company involved
- Sharp HealthCare
- AI system involved
- AI scribe
1 source article · read the reporting →
Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE
Generated a legal brief with hallucinated case law, filed in court.
- AI system involved
- Claude
1 source article · read the reporting →
CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
1 source article · read the reporting →
OpenAI sued over alleged undisclosed human review of ChatGPT conversations - Top Class Actions
ChatGPT conversations were reviewed by third-party contractors without adequate disclosure to users.
- Company involved
- OpenAI OpCo LLC
- AI system involved
- ChatGPT
1 source article · read the reporting →
OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView
The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.
1 source article · read the reporting →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Giggle for Girls v Tickle [2026]: AI Facial Recognition, Gender Identity & Discrimination - Legal Service India
The system excluded a transgender woman from a women-only social networking app based on her facial appearance.
- Company involved
- Giggle for Girls Pty Ltd
- AI system involved
- Giggle App
1 source article · read the reporting →
Expedia Accused of Using AI to Jack Up Hotel Room Rates - Bloomberg Law News
Set artificially inflated hotel room rates for consumers booking US hotel accommodations
- Company involved
- Expedia Group Inc.
1 source article · read the reporting →
Estate of Suzanne Adams sues OpenAI for wrongful death
The Estate of Suzanne Adams has filed a lawsuit against OpenAI, Microsoft, and Samuel Altman in California Superior Court, alleging that OpenAI's AI system caused her death. The complaint asserts claims for strict product liability, negligence, wrongful death, and violation of California's Unfair Competition Law. The case is pending.
- Company involved
- OpenAI
7 source articles · read the reporting →
Perplexity AI's Pages feature accused of plagiarizing Forbes reporting
Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.
- Company involved
- Perplexity AI
- AI system involved
- Perplexity Pages
10 source articles · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
Microsoft, OpenAI Sued by Papers Seeking Removal From Models - FourWeekMBA
Microsoft, OpenAI Sued by Papers Seeking Removal From Models FourWeekMBA
- Company involved
- Microsoft and OpenAI
- AI system involved
- GPT models (ChatGPT, Copilot)
1 source article · read the reporting →
New York federal court sanctions lawyer for non-existent quotations after ChatGPT research
In Tiekert v. Village of Mamaroneck in the Southern District of New York, the court found that the plaintiff's lawyer filed briefs containing non-existent quotations and misrepresented authorities. In a filing to the court, the lawyer said ChatGPT had been used to assist with legal research. On September 14, 2026, the court imposed Rule 11 sanctions: $500 payable to the court and two New York continuing legal education credits in ethics on the use of AI.
2 source articles · read the reporting →
Re an Office-Holder; Cork v Smith (Chancery): AI-hallucinated content in court filing, Public admonishment; SRA Referral
The AI system generated a non-existent insolvency rule that was submitted to the court, misleading the court.
- Company involved
- Pinsent Masons LLP
1 source article · read the reporting →
Solicitors Regulation Authority Ltd v Abhishek Kumar (Solicitors Disciplinary Tribunal): AI-hallucinated content in court filing, Counsel struck off the Register…
AI-generated false legal citations were submitted to the Solicitors Disciplinary Tribunal, misleading the tribunal and the regulator.
1 source article · read the reporting →
Pras Michel seeks new trial over lawyer's use of AI for closing arguments
Prakazrel 'Pras' Michel, a former member of the Fugees, was convicted of criminal conspiracy charges for attempting to influence US presidential administrations. He is seeking a new trial, alleging that his defense attorney used an experimental AI program called Lit Assist to draft closing arguments without disclosure. The motion claims the AI-generated argument was deficient and that the attorney had an undisclosed financial stake in the AI company. The court has scheduled an evidentiary hearing.
- AI system involved
- Lit Assist
10 source articles · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
