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
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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
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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
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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
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Italian bank (Fideuram / Intesa Sanpaolo) loses about 95 million euro to AI voice-clone scam
The AI-generated voice deceived the chairman into authorizing transfers of about 95 million euros.
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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.
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AI deepfake scam cons Los Angeles woman out of life savings
A South Los Angeles woman, Abigail, was deceived by scammers using AI-generated deepfake videos to impersonate 'General Hospital' actor Steve Burton. Believing she was in a relationship with the celebrity, she sent at least $81,304 in gift cards, cash and bitcoin, and sold her condo for $350,000 before her daughter intervened. The family has filed a lawsuit to reverse the home sale, and the real Steve Burton says hundreds of fans have been similarly targeted. The victim, who has bipolar disorder, is now in debt and facing bankruptcy.
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AI voice clone scams Hillsborough woman out of $15,000
Sharon Brightwell received a call from a number appearing to be her daughter's, with a voice sobbing and claiming to have been in a car crash. A man posing as an attorney demanded $15,000 in bail money, which she paid. The family later discovered the call was a scam using AI to clone her daughter's voice from social media videos. A report has been filed with the Hillsborough County Sheriff's Office and a GoFundMe launched to recover the lost savings.
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Deepfake Elon Musk scam costs healthcare worker over $10,000
Heidi Swan, a 62-year-old healthcare worker, lost over $10,000 after investing in a cryptocurrency scheme promoted by deepfake videos of Elon Musk on Facebook and TikTok. The videos, created using artificial intelligence, appeared convincing and led her to believe the endorsement was genuine. Deepfake scams are rising, with AI-generated content contributing to over $12 billion in fraud losses last year, according to Deloitte. Swan's case remains unresolved.
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Florida man loses $45,000 in Elon Musk deepfake scam
George Hendricks, a 69-year-old from Leesburg, Florida, was scammed out of $45,000 after scammers used deepfake videos of Elon Musk to convince him he had won a car and $100,000. The scammers demanded fees for shipping and investment opportunities, sending personalised deepfake videos to maintain the ruse. Hendricks reported the scam to the Leesburg Police Department, but the money is gone, jeopardising his marriage and home. The incident highlights the growing threat of AI-generated deepfakes in fraud.
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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
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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
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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
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