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 →
Geico and other insurers charge higher premiums in minority neighborhoods than in white areas with similar risk
ProPublica's analysis of auto insurance premiums in California, Illinois, Texas and Missouri found that major insurers such as Geico, Allstate and Liberty Mutual charge minority neighborhoods up to 30% more than white areas with similar accident costs. The disparity is alleged to result from pricing algorithms that may inadvertently use zip code as a proxy for race. Otis Nash, a 26-year-old Chicagoan, pays $190.69 per month for Geico insurance while a white driver in a safer neighborhood pays $54.67. The insurers deny discrimination, stating they do not collect race data.
- Company involved
- Geico
5 source articles · read the reporting →
Mother of robodebt suicide victim tells inquiry of government stonewalling
Jennifer Miller, whose son Rhys Cauzzo took his own life in 2017 while facing Centrelink debts of about $17,000, told the robodebt royal commission that the government stonewalled her for years. The commission heard that Cauzzo's debt was unlawfully calculated using income averaging and that no vulnerability indicator was on his file despite his mental health conditions. Miller said she felt vindicated by the commission's findings, while the former human services minister Alan Tudge had claimed the department acted appropriately. The robodebt scheme, which ran from 2015 to 2019, ended in a $1.8bn settlement after a class action.
- Company involved
- Department of Human Services (Services Australia)
- AI system involved
- Robodebt
10 source articles · 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 →
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 →
Scottish Prison Service freed eight life prisoners due to risk assessment system error
The Scottish Prison Service's Level of Service and Case Management System failed to update risk assessments when new information was entered, leading to incorrect risk scores for 495 closed cases and 285 open cases. As a result, eight prisoners serving life for murder or rape were granted temporary release without accurate risk assessments. Justice Secretary Keith Brown acknowledged the error and stated that the cases would be reviewed. Opposition politicians called for an apology, claiming the releases put the public at risk.
- Company involved
- Scottish Prison Service
- AI system involved
- Level of Service and Case Management System
10 source articles · 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 →
“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 →
State Farm hit with lawsuit over AI bias, discrimination and unpaid insurance claims - beinsure.com
Denied or canceled insurance policies and delayed claim payments to policyholders, disproportionately affecting Black and nonwhite, disabled, and abuse survivor policyholders.
- Company involved
- State Farm
1 source article · read the reporting →