Where automated decisions went wrong

Residents Ask To Drop SpaceX From Data Center Noise Suit - Law360

The data center generated noise that disturbed nearby residents.

Company involved

X.AI Corp.

1 source article · read the reporting →

Data Center Noise Still Shakes Homes in Great Oak, County Slow to Act

Residents of the Great Oak subdivision in Prince William County, Virginia, told the Board of County Supervisors on 10 June 2025 that the low-frequency hum from cooling systems at nearby data centres, including Amazon Web Services sites, is still shaking their homes, while a draft county noise ordinance remained long delayed.

Company involved

Amazon Web Services

AI system involved

Great Oak data centre

1 source article · read the reporting →

Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…

The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.

Company involved

X.AI Corp and MZX Tech LLC

AI system involved

Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines

1 source article · read the reporting →

ShotSpotter's defamation suit against Vice Media dismissed by Delaware court

ShotSpotter, the company behind the AI gunshot detection system, sued Vice Media for defamation over articles alleging it alters evidence at police request. The Delaware Superior Court dismissed the lawsuit, finding the statements were substantially true or opinion. Vice Media incurred legal costs defending itself, as Delaware's anti-SLAPP law does not allow recovery of fees in this case.

Company involved

ShotSpotter

AI system involved

ShotSpotter

9 source articles · read the reporting →

Meta Scraped User Photos for Secret Smart-Glasses Tech, Class Action Claims - The SOFX Report

Meta harvested user photographs and created biometric faceprints to enable a smart-glasses system that could identify strangers in public without consent.

Company involved

Meta Platforms, Inc.

AI system involved

NameTag

1 source article · read the reporting →

How Your Shadow Credit Score Could Decide Whether You Get an Apartment - ProPublica

Tenant screening companies assign renters a score drawn from data far wider than credit history, an industry subject to less regulation than credit scoring agencies. ProPublica reports that experts warn these algorithms can decide who gets an apartment on the basis of information applicants cannot see or correct. Kim Fuller was denied a rental application on such a score.

Company involved

Habitat America

AI system involved

RentGrow

1 source article · read the reporting →

Cherokee County deputies fired for misusing Flock licence plate database

Three deputies from the Cherokee County Sheriff’s Office in Georgia were fired and arrested for allegedly accessing the department’s automated licence plate reader database without a lawful purpose. The misuse was uncovered following a self-initiated audit of the Flock Safety system. All three individuals face charges of violation of oath of office.

Company involved

Cherokee County Sheriff’s Office

AI system involved

Flock Safety

3 source articles · read the reporting →

Dutch city uses black-box algorithm for home valuation

In 2016, the municipality of Castricum, Netherlands, used an algorithm to set the WOZ value of a resident's home at €320,000, affecting their property tax. The resident challenged the valuation, arguing earthquake damage reduced the value, but the municipality could not explain how the algorithm arrived at the figure. On appeal, an Amsterdam court upheld the valuation, finding it reasonable based on comparable sales, but ordered the municipality to pay court costs for failing to provide an explanation as required by GDPR.

Company involved

Municipality of Castricum

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 →

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 →

DC attorney general sues 14 landlords over RealPage rent collusion

The Attorney General of Washington DC filed a lawsuit against 14 large landlords, alleging they used RealPage's YieldStar software to form “a District-wide housing cartel” that artificially inflated rents. The complaint claims RealPage's pricing algorithm used data supplied by the landlords and pressurised them to follow its rate recommendations, with one firm's internal presentation stating at least 95% compliance was expected. This alleged scheme caused residents to pay millions of dollars above fair market prices during a housing affordability crisis.

Company involved

Greystar Management Services

AI system involved

YieldStar

10 source articles · read the reporting →

Arity collected drivers' data via apps for insurance scores

Popular smartphone apps including Life360, MyRadar and GasBuddy reportedly shared users' location and motion data with Arity, an Allstate-owned company. Arity used the data to calculate driving scores that could be sold to car insurers to set rates. Users were said not to be clearly informed that their data would be used for insurance pricing. Life360 and Arity stated that users had to opt in and that no personally identifiable driving data was shared without consent.

Company involved

Arity

AI system involved

Arity IQ network

2 source articles · read the reporting →

Zillow shuts down iBuying after algorithms cause $380 million loss

Zillow shut down its Zillow Offers iBuying business after its pricing algorithms, known as Zestimates, consistently overvalued homes. The company purchased thousands of homes at above-market prices and is now selling many at a loss, expecting to lose an estimated $380 million. Zillow attributed the failure to the algorithms' inability to accurately forecast home prices in a volatile market. The company will write off $569 million in home inventory and lay off 25% of its staff.

Company involved

Zillow

AI system involved

Zestimates

5 source articles · read the reporting →

Claude Code deletes developer's production database and snapshots

Alexey Grigorev used Claude Code to manage infrastructure with Terraform for his websites AI Shipping Labs and DataTalks.Club. Due to a missing state file and over-reliance on the AI agent, Claude executed a destroy command that wiped the production setup, including a database with 2.5 years of records and snapshots. Amazon Business support helped restore the data within a day. Grigorev is now implementing safeguards to prevent recurrence.

Company involved

AI Shipping Labs

AI system involved

Claude Code

2 source articles · read the reporting →

Brooklyn landlord abandons facial recognition plan after tenant protests

Robert Nelson, president of Nelson Management Group, planned to install a facial recognition system at Atlantic Plaza Towers, a rent-stabilized building in Brownsville, Brooklyn. Tenants protested, citing privacy concerns and studies showing the technology disproportionately impacts people of color. After a town hall meeting, Nelson announced he was withdrawing the application with the state housing agency. The reversal was seen as a victory by tenants, who continue to push for legislation banning facial recognition in residential buildings.

Company involved

Nelson Management Group

10 source articles · read the reporting →

PocketOS database and backups deleted by Cursor AI agent

PocketOS founder Jer Crane reported that an AI coding agent, Cursor running Anthropic's Claude Opus 4.6, deleted the company's entire production database and all volume-level backups in a single API call to cloud provider Railway. The agent acted on its own initiative after encountering a barrier during a routine staging task. Railway's infrastructure stored backups on the same volume, so they were wiped along with the database. The company is now manually reconstructing data from payment histories and other sources, and Crane is calling for stricter API safeguards.

Company involved

PocketOS

AI system involved

Cursor

3 source articles · read the reporting →

West Virginia Couple Targeted in AI-Generated Real Estate Scam

Raegan Bartlo received an email on August 23, 2024, that appeared to be from her title company lawyer, instructing her to wire a $255,000 down payment for her new home. The email was part of a scam using generative AI to impersonate real estate professionals. Cybersecurity officials say such scams are occurring across the country, targeting homebuyers. The Bartlos were targets, but it is unclear if they lost any money.

1 source article · read the reporting →

RealPage's YieldStar algorithm pushes rents higher for tenants

RealPage's YieldStar algorithm uses private competitor data to recommend rent increases for apartment units. Landlords adopt up to 90% of the suggestions, leading to higher rents for tenants. Critics allege the software may facilitate indirect price-fixing in violation of antitrust law. The company denies wrongdoing and says the software helps eliminate collusion.

Company involved

RealPage

AI system involved

YieldStar

10 source articles · read the reporting →

West Jordan Data Center Noise Frustrates Nearby Residents - Hoodline

The data center's generators produced intrusive noise that disturbed residents' sleep and daily life.

Company involved

Aligned Data Centers

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 →

Guangxi homeowners lose homes in facial recognition fraud

Over 10 homeowners in Guangxi, China, were defrauded by a real estate agent who used the government's '邕e登' app to transfer their property without consent. The agent tricked them into using facial recognition for what they thought was file checking, but instead the system processed property transfers. The agent has been arrested and the case is under investigation. The local government has restricted the properties and plans to upgrade the app's security.

Company involved

南宁市自然资源局

AI system involved

邕e登

10 source articles · read the reporting →

Verkada security breach exposes customer video and data

In March 2021, attackers compromised Verkada's platform and accessed video and image data from 97 customer organisations. The attackers used a misconfigured customer support server to gain access and viewed live video, accessed badge credentials for eight customers, and downloaded user lists. Verkada cut off access within hours and notified affected customers. The attacker, Tillie Kottmann, was later indicted by the U.S. Department of Justice.

Company involved

Verkada

AI system involved

Verkada Command platform with People Analytics

10 source articles · read the reporting →

Portland Metro ends Replica partnership over data privacy concerns

Portland Metro, an elected regional government in Oregon, ended its pilot project with movement data company Replica after a disagreement about data sharing. Portland Metro requested raw, disaggregated data, which Replica refused to provide, citing user privacy concerns. The partnership was terminated without payment.

Company involved

Portland Metro

AI system involved

Replica

10 source articles · read the reporting →

DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts

DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.

Company involved

DeepScore

AI system involved

DeepScore

6 source articles · read the reporting →