Security Health Plan used AI to cut off nursing home care for 85-year-old woman
Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.
- Company involved
- Security Health Plan
- AI system involved
- nH Predict
1 source article · read the reporting →
SEC charges YouPlus and CEO with defrauding investors
The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.
- Company involved
- YouPlus
- AI system involved
- YouPlus machine-learning tool
1 source article · read the reporting →
Pensioner loses 80,000 pounds to deepfake Martin Lewis investment scam
The deepfake video deceived a pensioner into investing in a fraudulent scheme and taking out loans.
1 source article · read the reporting →
Insurer drops California homeowner after aerial photo analysis
Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.
2 source articles · read the reporting →
Zillow faces securities class action over Zillow Offers wind-down
Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.
- Company involved
- Zillow Group, Inc.
- AI system involved
- Zillow Offers
10 source articles · read the reporting →
State Farm accused of algorithmic bias against Black homeowners
A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.
- Company involved
- State Farm
- AI system involved
- automated claims processing system
2 source articles · 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 →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
Apple Siri Settlement: How to Claim Up to $95 - Yahoo Finance
Apple Siri Settlement: How to Claim Up to $95 Yahoo Finance
- Company involved
- Apple
- AI system involved
- Siri
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 →
Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
1 source article · read the reporting →
Upstart Holdings sued for securities fraud over AI model claims
Upstart Holdings, Inc., a cloud-based AI lending platform, is accused of making false and misleading statements about its AI model's ability to account for macroeconomic factors. The lawsuit, filed on May 13, 2022, alleges that the company's positive statements about its business were materially false. Investors suffered losses when Upstart's stock price fell 56% on May 9, 2022, after the company reduced its fiscal 2022 guidance.
- Company involved
- Upstart Holdings, Inc.
- AI system involved
- Upstart AI lending platform
10 source articles · read the reporting →
Pensioner loses $224k to AI deepfake cryptocurrency scam featuring Prime Minister Luxon
A 72-year-old Taranaki grandmother lost $224,000 after being tricked by an AI-generated deepfake video of Prime Minister Christopher Luxon promoting cryptocurrency investment. The scammers used remote access software to transfer her savings and inheritance. TSB declined liability, stating the victim enabled the scam by granting remote access. Police are investigating.
- Company involved
- TSB
2 source articles · read the reporting →
Inflection background check errors lead to lawsuits from banned Airbnb users
Inflection, a background check company used by Airbnb, Uber, and other platforms, has been sued multiple times for providing inaccurate reports. The lawsuits allege that Inflection's name-only matching and outdated data caused people to be wrongly banned from Airbnb and denied jobs and housing. Some cases have been settled, while others remain ongoing. The company is accused of violating the Fair Credit Reporting Act.
- Company involved
- Inflection
- AI system involved
- Inflection background check
8 source articles · read the reporting →
Tenant screening software denies housing to disabled Latino man in Connecticut
In 2016, Carmen Arroyo requested to move her disabled son Mikhail into a larger apartment in the same complex. The landlord, WinnResidential, used CoreLogic's CrimSafe tenant screening software, which flagged a dropped retail theft charge against Mikhail as disqualifying. The landlord rejected the application without explanation. Arroyo sued CoreLogic and WinnResidential under the Fair Credit Reporting Act and the Fair Housing Act, alleging that the software disproportionately excludes people of colour. The case was scheduled for trial in August 2021.
- Company involved
- WinnResidential
- AI system involved
- CrimSafe
10 source articles · read the reporting →
Lawsuit: AI Illegally Recorded Doctor-Patient Encounters - BankInfoSecurity
The system recorded and transcribed patient-doctor conversations without patients' informed consent.
- Company involved
- Sutter Health and MemorialCare
- AI system involved
- Abridge AI platform
1 source article · read the reporting →
MAJOR LAWSUIT ALERT!: Home Depot And Google Facing CIPA Lawsuit For Use Of Google’s Cloud Contact Center AI - natlawreview.com
The system recorded and transcribed customer service calls without consent, affecting the privacy of callers.
- Company involved
- Home Depot
- AI system involved
- Google Cloud Contact Center AI
1 source article · read the reporting →
Call Vendors Skirt Wiretap Suit Over AI Transcription Tool - Law360
The system recorded and analyzed patient phone calls without their consent.
- Company involved
- Heartland Dental LLC
1 source article · read the reporting →
Lawsuit alleges Google violated California privacy laws recording Home Depot customer service calls - CX Dive
The system recorded and analyzed customer service calls and suggested agent replies without callers' consent.
- Company involved
- Home Depot
- AI system involved
- Cloud Contact Center AI
1 source article · read the reporting →
Not Again! A Second Talkdesk Customer Is Sued for Its Use of Contact Center AI - cxtoday.com
The system intercepted, recorded, and analyzed the communications of LegalShield customers without their consent.
- Company involved
- LegalShield
- AI system involved
- Talkdesk CCaaS
1 source article · read the reporting →
Centrelink victim's mum reveals cruel twist years after son's $1,795 debt notice - Yahoo Finance Australia
The system determined Jarrad Madgwick owed a debt and made him ineligible for Centrelink payments.
- Company involved
- Services Australia
- AI system involved
- Robodebt
1 source article · read the reporting →
Universal and Warner press court to end US musicians’ lawsuit over Udio, Suno deals - Music Business Worldwide
Record labels licensed union musicians' recordings to AI music companies without additional payment or credit.
- Company involved
- Universal Music Group, Warner Records
- AI system involved
- Suno, Udio
1 source article · read the reporting →
“Listen Up” if Your AI Policy Does Not Cover AI Recording Issues –Another Class Action Lawsuit Filed Over Third Party…
AI system recorded and analyzed calls between a dental company and its patients
- Company involved
- dental company
1 source article · read the reporting →
Talkdesk Hit With Class Suit Over Customer Service Software - news.bloomberglaw.com
The system secretly recorded and analyzed customer service conversations of callers to Patagonia and Zumiez without consent.
- Company involved
- Talkdesk Inc.
- AI system involved
- CX Cloud
1 source article · read the reporting →
