Steak 'n Shake sued over facial recognition kiosks under BIPA
A class action lawsuit alleges that Steak 'n Shake illegally collects facial biometrics from customers using PopID-powered self-ordering kiosks without proper consent. Plaintiff Michael Massel claims the restaurant chain failed to provide notice and obtain written consent as required by Illinois' Biometric Information Privacy Act (BIPA). The suit seeks damages of up to $5,000 per violation for anyone whose biometric data was collected in Illinois in the past five years.
- Company involved
- Steak 'n Shake
- AI system involved
- PopID biometric kiosks
6 source articles · read the reporting →
Refugee claimants strike out after Federal Court says their legal claim is AI fakery - National Post
The Federal Court rejected the refugee claimants' appeal due to AI-generated fake legal arguments.
- Company involved
- OWS Law
1 source article · 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 →
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 →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
Hotel Guests Appeal Dismissal of Federal Price-Fixing Lawsuit Accusing Strip Casinos of Algorithmic Room Rate Collusion - Nevada Globe
Hotel guests allege that Las Vegas Strip casino operators used algorithmic pricing software that recommended inflated room rates, leading guests to pay supracompetitive prices. They are appealing the dismissal of their federal price-fixing suit.
- Company involved
- MGM Resorts International, Caesars Entertainment, Wynn Resorts, Treasure Island
- AI system involved
- Rainmaker Guestrev and Grouprev
1 source article · 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 →
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 →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Expedia hit with antitrust class action over algorithm pricing scheme - Courthouse News
A class action alleges Expedia took part in an algorithmic pricing scheme that inflated hotel room prices for consumers booking through Expedia and other platforms.
- Company involved
- Expedia
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 →
Illinois appeals court fines lawyer $15,000 for fictitious citations in Scott v. Illinois Human Rights Commission
In Scott v. Illinois Human Rights Commission, an Illinois Appellate Court case, a lawyer's filings contained fictitious legal citations and misquoted statutes. The court fined the lawyer $15,000 and referred the matter to the bar.
- AI system involved
- ChatGPT
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 →
State ex rel. Steven Schnell v. Honorable Rebecca Richardson (CA Missouri): AI-hallucinated content in court filing, Monetary Sanction
The AI-generated fictitious case citations misled the court and caused opposing counsel to incur attorney's fees.
- Company involved
- Jenna Rohr Conley
1 source article · read the reporting →
Re an Office-Holder; Cork v Smith (Chancery): AI-hallucinated content in court filing, Public admonishment; SRA Referral
The AI system generated a non-existent insolvency rule that was submitted to the court, misleading the court.
- Company involved
- Pinsent Masons LLP
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 →
Consumer Reports calls for action against Meta over scam ad proliferation
Consumer Reports has called on the FTC and state attorneys general to take enforcement action against Meta for allowing billions of scam advertisements on its platforms. According to a Reuters investigation, Meta's own documents showed that the company delivered an estimated 15 billion scam ads per day in 2024, generating billions of dollars in revenue. Meta is accused of failing to identify and remove most scam ads, exposing users to fraudulent schemes and illegal products. Consumer Reports argues that Meta's practices constitute unfair business practices under the FTC Act and state laws.
- Company involved
- Meta
6 source articles · read the reporting →
Whitebridge AI faces complaint over false reputation reports
Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.
- Company involved
- Whitebridge AI
6 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 →
