Didi fined for over-collecting personal data of users
The Cyberspace Administration of China fined Didi Global Inc. for violating data protection laws. The investigation found that Didi had over-collected personal data from passengers and drivers, including facial recognition, location, and clipboard information, totaling billions of records. The violations began in 2015 and continued until the investigation in 2021. Didi was ordered to pay a penalty and correct its practices.
- Company involved
- 滴滴全球股份有限公司 (Didi Global Inc.)
- AI system involved
- Didi ride-hailing apps
8 source articles · read the reporting →
Boeing ordered to pay $49.5 million to family of 737 MAX crash victim
A federal jury in Chicago awarded $49.5 million to the family of Samya Stumo, who died in the 2019 crash of Ethiopian Airlines Flight 302, a Boeing 737 MAX. The crash was caused by a problem with the plane's automated flight control system. Boeing admitted responsibility, and the trial determined compensatory damages for the family's loss. The family has also pushed for accountability from regulators.
- Company involved
- Boeing
- AI system involved
- 737 MAX
10 source articles · 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 →
TerraUSD and Luna algorithmic stablecoin collapse wipes out $60 billion
The algorithmic stablecoin TerraUSD (UST) and its sister token Luna collapsed in May 2022, losing nearly all their value. The system, developed by Terraform Labs, used an algorithm to maintain a $1 peg for UST by swapping with Luna. A bank run triggered by large withdrawals and a drop in yields caused a death spiral, wiping out approximately $60 billion in market value. Do Kwon, the founder, attempted to save the peg using Bitcoin reserves but ultimately failed.
- Company involved
- Terraform Labs
- AI system involved
- TerraUSD (UST) and Luna
10 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 →
Government Questions Avride Crash Reports About Injuries - Car Complaints
Federal regulators questioned Avride's reports of crashes involving its autonomous vehicles, including how injuries to occupants were reported.
- Company involved
- Avride
- AI system involved
- Avride automated driving system
1 source article · read the reporting →
User loses lawsuit against tech company over AI-generated inaccurate information
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 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 →
NHTSA investigation PE25012: Traffic safety violations while Full Self Driving ("FSD") is engaged
The system made driving decisions that violated traffic safety laws, affecting other road users.
- Company involved
- Tesla, Inc.
- AI system involved
- Full Self Driving (FSD)
1 source article · read the reporting →
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
4 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 →
CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
1 source article · read the reporting →
Woman Blindly Trusts Driver Assistance, Rear-Ends Lane-Changing Bus on Highway
女子轻信辅助驾驶放任不管 高速上直接追尾变道大巴车 - 驱动之家
On August 28, on the Shanghai-Kunming Expressway, a woman driving an SUV with driver assistance engaged rear-ended a bus that suddenly changed lanes. She assumed the system would brake automatically and took no action. The bus driver was found at fault for the lane change, but police warned against over-reliance on driver assistance.
1 source article · read the reporting →
$30M Equifax hard inquiry dispute class action settlement - Top Class Actions
A class action, settled for $30 million, alleged that Equifax automatically rejected consumers' disputes of hard inquiries on their credit reports, sending a form letter instead of investigating.
- Company involved
- Equifax Information Services LLC
1 source article · read the reporting →
NHTSA investigation PE24015: Rear-end Collisions Involving Zoox Vehicles
Automated driving system controlled vehicle braking and acceleration, leading to rear-end collisions with other road users
- Company involved
- Zoox
- AI system involved
- Zoox vehicle
1 source article · read the reporting →
Tesla Model 3 crash, 1 killed, Autopilot verified: Multi-event collision with truck on highway
The Tesla Model 3, with Autopilot possibly engaged, struck an overturned semi-truck and a pedestrian, killing the driver and injuring the pedestrian.
- Company involved
- Tesla
- AI system involved
- Autopilot
1 source article · read the reporting →
Carlisle woman, 82, dies after losing 35,000 pounds to Nigel Farage deepfake scam
The deepfake video convinced the victim to invest in a fraudulent scheme, leading to financial loss.
1 source article · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
Del Biaggio v. Bansen (CA California (4d)): AI-hallucinated content in court filing, Monetary Sanction
The AI generated fake legal citations that were included in an appellate brief, affecting the court and the client.
- Company involved
- Carlton Floyd
1 source article · read the reporting →
New York federal court sanctions lawyer for non-existent quotations after ChatGPT research
In Tiekert v. Village of Mamaroneck in the Southern District of New York, the court found that the plaintiff's lawyer filed briefs containing non-existent quotations and misrepresented authorities. In a filing to the court, the lawyer said ChatGPT had been used to assist with legal research. On September 14, 2026, the court imposed Rule 11 sanctions: $500 payable to the court and two New York continuing legal education credits in ethics on the use of AI.
2 source articles · 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 →
Jackie L. Miller v. Regions Bank (N.D. Alabama): AI-hallucinated content in court filing, DQ from case and court (6 months);…
Attorney H. Gregory Harp was sanctioned with a public reprimand, disqualification from the case, a six-month court suspension, and a bar referral for filing AI-hallucinated legal citations and deleting evidence.
- Company involved
- Regions Bank
- AI system involved
- ChatGPT
1 source article · read the reporting →
Registered Trustees of the Assemblies of God Gospel Church International (AGGCI) v Registrar of Societies and Others (High Court): AI-hallucinated…
The AI generated non-existent court case citations that were presented to the High Court, misleading the judge and opposing counsel.
1 source article · read the reporting →
Sent. n. 1027/2026 (Corte Suprema di Cassazione): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs Order
The AI system generated fake legal precedents that were included in a lawyer's court filing, misleading the court and opposing party.
1 source article · read the reporting →
