Where automated decisions went wrong

Italy terminates contracts with Paragon spyware after surveillance scandal

Italy has terminated its contracts with Israeli spyware company Paragon after revelations that the spyware was used against government critics, including journalists and migrant rescue workers. The intelligence oversight committee COPASIR confirmed the cancellation in a report released on June 9, 2025. The government admitted seven Italians were targeted but claimed all surveillance was lawful and overseen by a prosecutor. Opposition parties are demanding a full investigation.

Company involved

Italian government

AI system involved

Paragon spyware

9 source articles · 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 →

Buenos Aires city government recuses judge who suspended facial recognition system

The Buenos Aires city government recused Judge Roberto Gallardo after he suspended the Sistema de Reconocimiento Facial de Prófugos, a facial recognition system used to identify and detain individuals with outstanding arrest warrants. The government claims the judge's ruling was politically motivated and that the system has helped capture over 1,600 fugitives. The government is challenging the suspension in court.

Company involved

Gobierno de la Ciudad Autónoma de Buenos Aires

AI system involved

Sistema de Reconocimiento Facial de Prófugos

10 source articles · read the reporting →

Sentenza del 23.09.2025 (Tribunale di Latina): AI-hallucinated content in court filing, Monetary Sanction

The AI-generated court filing contained fabricated case law, leading to a monetary sanction against the party represented by the lawyer.

1 source article · read the reporting →

Unnamed Brazilian litigant (): AI-hallucinated content in court filing, Appeal partially granted (reintegration suspended, rent imposed), but

AI-generated fake court precedents were included in a legal appeal, leading to sanctions against the litigant for bad-faith litigation.

AI system involved

ChatGPT

1 source article · read the reporting →

The People v. Raziel Ruiz Alvarez (CA California): AI-hallucinated content in court filing, Published order; monetary sanction payable by Counsel…

The AI generated fabricated legal citations that were included in a court filing, affecting the defendant's legal representation and the court's resources.

Company involved

Attorney Siddell

1 source article · read the reporting →

Ramirez v. Humala (E.D. New York): AI-hallucinated content in court filing, Monetary sanction jointly imposed on counsel and firm; order…

The AI generated nonexistent case citations that were filed in court, misleading the court and opposing counsel.

1 source article · read the reporting →

Recurso de Suplicación 0005472/2025 (T.S.X. Galicia): AI-hallucinated content in court filing, Bar Referral

The AI generated false legal citations that were included in a court filing, misleading the court and potentially harming the client's case.

1 source article · read the reporting →

Michael L. Ruiz v. Magellan Financial & Insurance Services (2) (D. Arizona): AI-hallucinated content in court filing, Formal public reprimand

AI-hallucinated fake quotations were included in court filings submitted by counsel Elizabeth Tate, misleading the court.

1 source article · read the reporting →

Barteca Holdings v. Tacobarn (D. Connecticut): AI-hallucinated content in court filing, Monetary Sanction; Bar Referral

The attorney filed a court document containing AI-hallucinated legal authorities, misleading the court and opposing party.

Company involved

Hilary Miller

1 source article · read the reporting →

Natalia Denegri sues Google to remove old search results

Natalia Ruth Denegri sued Google Inc. to remove search results linking to videos and news from over 20 years ago, related to the 'Caso Cóppola' criminal case. She argued the information was outdated, irrelevant, and harmed her reputation and privacy. A lower court ordered Google to block access to certain content, but Google appealed, claiming the order violated freedom of expression. The case reached the Argentine Supreme Court, which held a public hearing in March 2022 and has not yet issued a final ruling.

Company involved

Google Inc.

AI system involved

Google Search

10 source articles · read the reporting →

Userviz machine-learning aimbot shut down after Activision request

A developer known as User101 shut down the Userviz cheat after Activision requested that he stop developing it. The software used computer vision and machine learning to automate aiming in games such as Call of Duty: Warzone, and was marketed as undetectable. It was never published, and the developer said his intention was not to do anything illegal.

Company involved

User101

AI system involved

Userviz

7 source articles · read the reporting →

Mercadona fined €2.5 million for facial recognition pilot

Mercadona, a Spanish supermarket chain, tested an early-detection system using facial recognition in 48 stores to identify people with judicial restraining orders. The system, which operated with court authorisation, notified police when such a person was detected. The Spanish data protection authority (AEPD) imposed a €2.5 million fine, which Mercadona paid, and the company has since removed the system citing legal uncertainty.

Company involved

Mercadona

AI system involved

Sistema de Detección Anticipada (Early Detection System)

10 source articles · 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 →

TOV Realty, LLC v. Suarez; Kosel Equity, LLC v. MacGregor (SC Connecticut): AI-hallucinated content in court filing, 6 hours CLE;…

The AI generated legal briefs containing fabricated citations, which were submitted to the Connecticut Supreme Court.

Company involved

GLG Law LLC

AI system involved

ChatGPT

1 source article · read the reporting →

ScaleFactor reportedly failed to deliver promised automated bookkeeping software

ScaleFactor, an Austin-based startup, is reported to have failed to deliver the automated, real-time bookkeeping tools it promised customers, instead relying on human bookkeepers and a Filipino contract accounting firm. The company told Forbes in June that it was shutting down, initially blaming the pandemic, but Forbes later reported that its problems predated Covid-19. Investors reportedly came to see the company as more of a services business than a software platform, and pulled funding after a pivot to a marketplace model. No legal or regulatory action is reported.

Company involved

ScaleFactor

10 source articles · read the reporting →

Spanish Supreme Court orders release of BOSCO algorithm code for social electricity bonus

The Spanish NGO Civio won a Supreme Court case forcing the government to release the source code of BOSCO, the algorithm that decides eligibility for the social electricity bonus (bono social eléctrico). Civio had demonstrated in 2019 that BOSCO contained serious errors that denied the benefit to vulnerable people who met the requirements. The government had refused to disclose the code, citing intellectual property. The Supreme Court ruled that transparency must prevail, setting a precedent for public access to automated decision-making systems.

Company involved

Ministerio para la Transición Ecológica (Gobierno de España)

AI system involved

BOSCO

10 source articles · read the reporting →

JMOR Properties v. Artist Alley Townhomes et al. (CA Florida (4d)): AI-hallucinated content in court filing, Bar Referral

The AI generated fabricated legal citations that were included in a court filing, affecting the court and the opposing party.

1 source article · read the reporting →

Universal Music sues Anthropic over Claude 2 distributing copyrighted lyrics

Universal Music Group and other music publishers have sued AI company Anthropic, alleging that its Claude 2 chatbot generates and distributes copyrighted song lyrics without a license. The complaint, filed in Tennessee, claims that Claude 2 reproduces lyrics from songs like Katy Perry's 'Roar' and Don McLean's 'American Pie' when prompted. The publishers argue that Anthropic's actions constitute copyright infringement and that the company failed to implement effective guardrails to prevent such outputs.

Company involved

Anthropic

AI system involved

Claude 2

9 source articles · read the reporting →

BC Tribunal Confirms Companies Remain Liable for AI Chatbot-Created Information - Lexology

The AI chatbot provided inaccurate information to a user.

1 source article · read the reporting →

FTC settles with DoNotPay over deceptive AI lawyer claims

The FTC took action against DoNotPay, a company that claimed to offer an AI service that was 'the world's first robot lawyer.' The company promised to generate legal documents and replace human lawyers, but the FTC alleged it failed to test its AI output and did not hire any attorneys. DoNotPay agreed to a settlement requiring it to pay $193,000 and notify consumers about the limitations of its service.

Company involved

DoNotPay

AI system involved

DoNotPay

7 source articles · read the reporting →

Spanish police bust $20M AI-powered investment scam

Spanish law enforcement, collaborating with international authorities, dismantled a $20 million investment scam that used AI-driven algorithms to deceive individuals and organizations. Six suspects were detained and assets, including luxury cars and cryptocurrency, were seized. The article does not report any compensation for victims.

5 source articles · read the reporting →

Scammer sold fake AI-generated Frank Ocean tracks for thousands

A scammer using the handle mourningassasin sold fake Frank Ocean tracks generated by AI to music collectors on underground forums, making around $13,000 CAD. The tracks were created using a model trained on high-quality vocal snippets of Frank Ocean. The scammer admitted the tracks were AI-generated after being confronted by forum administrators, and was banned from the forum.

10 source articles · read the reporting →

AAIP investigates Worldcoin's personal data processing in Argentina

The Argentine Agency for Access to Public Information (AAIP) has initiated an investigation into the data processing practices of Worldcoin in Argentina. The investigation focuses on the collection, storage, and use of biometric data, including facial and iris scans, carried out in several cities in exchange for financial compensation. The AAIP aims to verify compliance with the country's data protection law, Ley 25.326, regarding sensitive data handling.

Company involved

Worldcoin (Fundación Worldcoin)

AI system involved

Worldcoin

8 source articles · read the reporting →