Meta accused of profiting from billions of scam ads - ICLG
The AI system generated and targeted scam advertisements to users, causing potential financial harm.
- Company involved
- Meta Platforms
- AI system involved
- Advantage+
1 source article · read the reporting →
The Trap Lurking in Tesla's 'Full Self-Driving': A Lawyer Who Won the First Autopilot Lawsuit Speaks on Responsibility and Challenges
テスラの「完全自動運転」に潜む罠…オートパイロット訴訟で初勝訴した弁護士が語る責任と課題 - Business Insider Japan
Attorney Brett Schreiber, who secured the first plaintiff victory in a Tesla Autopilot trial, continues to receive inquiries about potential lawsuits over the company's self-driving systems. He explained that his firm is forced to limit cases to those involving severe injury or death due to the extremely high litigation costs. Schreiber argued that Tesla oversold and overhyped its technology, leading drivers to over-rely on it.
- Company involved
- Tesla
- AI system involved
- Enhanced Autopilot
1 source article · read the reporting →
Cigna uses algorithm to deny medical claims without doctor review
Cigna, one of the largest health insurers, used an algorithm called PXDX to automatically deny medical claims. The system flagged mismatches between diagnoses and procedures, and company doctors signed off on denials in batches without reviewing patient files. One patient, Nick van Terheyden, was denied coverage for a $350 vitamin D test that his doctor had ordered. Former employees said the system saved Cigna billions of dollars but left patients with unexpected bills.
- Company involved
- Cigna
- AI system involved
- PXDX
10 source articles · read the reporting →
Meta faces UK group legal action over scam adverts on Facebook and Instagram
Meta is facing a multi-billion pound group legal action in the UK from consumers who allege that scam adverts on Facebook and Instagram caused them financial ruin. Victims claim that Meta's algorithms targeted them with fraudulent investment adverts, leading to losses averaging £37,000. Two law firms have launched the claim on a no-win, no-fee basis, arguing that Meta profited from the ads and failed to adequately prevent them. Meta says it aggressively fights scams and removed 159 million scam adverts last year.
- Company involved
- Meta
2 source articles · read the reporting →
Meazure Learning Agrees $1.35m California Bar Exam Class-Action Settlement - Lawyer Monthly
The exam software experienced technical failures that prevented candidates from logging in or completing the California bar exam.
- Company involved
- Meazure Learning
- AI system involved
- ProctorU
1 source article · read the reporting →
Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…
The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.
- Company involved
- X.AI Corp and MZX Tech LLC
- AI system involved
- Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines
1 source article · read the reporting →
Meta Scraped User Photos for Secret Smart-Glasses Tech, Class Action Claims - The SOFX Report
Meta harvested user photographs and created biometric faceprints to enable a smart-glasses system that could identify strangers in public without consent.
- Company involved
- Meta Platforms, Inc.
- AI system involved
- NameTag
1 source article · read the reporting →
Argentine Court Annuls Embargoes on Retiree After Identity Mix-Up in Child Support Case
Justicia argentina anula embargos a jubilada por cobro indebido de pensión de alimentos a raíz de error de identidad -…
A retiree had her pension wrongly garnished because her name matched that of the defendant in a child support lawsuit. The appeals court confirmed the immediate halt of the deductions and annulled the embargo, ruling it had no legal basis against a third party. The proceedings against the actual defendant were upheld, as the error was limited to the garnishment order sent with incorrect identification.
- Company involved
- Cámara de Apelaciones en lo Civil, Comercial, de Familia, de Minería y Contencioso Administrativo de Cipolletti
1 source article · read the reporting →
Pittsburg man loses $1,900 in AI-generated Trump investment scam
Wesley Skelton, a Marine Corps veteran from Pittsburg, California, was duped into buying 324 'golden eagles' for $2,500 after watching AI-generated videos of President Trump, Bank of America's CEO, and Elon Musk promoting the Golden Eagles Project. The videos, which appeared on Telegram, falsely claimed the collectible coins could be traded in for over $100,000 each at Bank of America. After discovering the items were worthless, Skelton received a partial refund of $600 from his credit card processor, but the seller did not respond. The scam highlights the use of AI-generated deepfakes to perpetrate financial fraud.
1 source article · read the reporting →
New York lawyer faces discipline for citing ChatGPT-fabricated case in appeal
New York attorney Jae Lee cited a fabricated case in an appeal to revive a client's medical malpractice lawsuit against a Queens doctor. The case was suggested by ChatGPT and did not exist. The court dismissed the case and referred Lee to the grievance panel for further investigation. Lee stated there was no bad faith, but the court found her conduct fell below basic obligations of counsel.
- Company involved
- JSL Law Offices
- AI system involved
- ChatGPT
5 source articles · read the reporting →
Claude Code deletes developer's production database and snapshots
Alexey Grigorev used Claude Code to manage infrastructure with Terraform for his websites AI Shipping Labs and DataTalks.Club. Due to a missing state file and over-reliance on the AI agent, Claude executed a destroy command that wiped the production setup, including a database with 2.5 years of records and snapshots. Amazon Business support helped restore the data within a day. Grigorev is now implementing safeguards to prevent recurrence.
- Company involved
- AI Shipping Labs
- AI system involved
- Claude Code
2 source articles · read the reporting →
Hassan v ABC International Bank (Employment Tribunals): AI-hallucinated content in court filing, Costs Order
The AI generated fabricated legal citations that the claimant submitted to the tribunal, resulting in a costs order against the claimant.
1 source article · read the reporting →
Myeesha Parker v. Costco Wholesale Corp. (W.D. Washington): AI-hallucinated content in court filing, Fine, Adverse Costs Order, Bar Referral
The lawyer submitted AI-generated court documents containing false citations and quotes, harming his client's discrimination case.
- AI system involved
- Callidus AI
1 source article · read the reporting →
Mag 7 Ltd. et al. v. Tederi et al. (District Court, Tel Aviv-Yafo): AI-hallucinated content in court filing, Monetary Sanction;…
The AI generated fabricated case law that was submitted to the court, affecting the legal proceedings.
1 source article · read the reporting →
Texas AG Settles with Pieces Technologies Over Deceptive Healthcare AI Claims
The Texas Attorney General investigated Pieces Technologies, a Dallas-based healthcare AI company, for making false and misleading statements about the accuracy of its generative AI product used in hospitals. The company claimed an error rate of less than 1 per 100,000, but the investigation found these metrics were likely inaccurate. As part of the settlement, Pieces agreed to accurately disclose its product's accuracy and ensure hospital staff understand the appropriate reliance on its AI. The case marks the first-of-its-kind healthcare generative AI investigation by the AG.
- Company involved
- Pieces Technologies
4 source articles · read the reporting →
SEC warns public of deep fake investment scams featuring Lance Gokongwei
The Securities and Exchange Commission (SEC) warned the public that scammers are using deep fake videos and audio of Lance Gokongwei to endorse fraudulent investment schemes. The manipulated media circulate on social media, deceiving people into investing in a platform registered in Cyprus. Victims are asked to provide credit card details and OTPs, then lose contact when attempting to withdraw funds. The SEC advises the public to verify investment offers with the agency.
2 source articles · read the reporting →
Yasiel Puig Valdes v. All3Media America, LLC, et al. (SCA California (Los Angeles)): AI-hallucinated content in court filing, Referral
The AI generated fake legal citations that were included in a court filing, potentially harming the plaintiff's case.
- AI system involved
- ChatGPT
1 source article · read the reporting →
Pelishek v. City of Sheboygan (E.D. Wisconsin): AI-hallucinated content in court filing, Monetary Sanction
The AI system generated false legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- John A. Pelishek
- AI system involved
- Westlaw Quick Check and AI Case Search Tool
1 source article · read the reporting →
Kruse v. Karlen (CA Missouri): AI-hallucinated content in court filing, Dismissal of Appeal + Damages Awarded for Frivolous Appeal.
An AI tool generated fictitious legal citations that the appellant included in his appellate brief.
1 source article · read the reporting →
Study finds Italian car insurers charge more based on birthplace
A study by the Universities of Padua, Udine and Carnegie Mellon found that Italian car insurers, including Genertel, Mps, Quixa and Con.Te, use birthplace and citizenship in pricing algorithms, charging some drivers over €1,000 more. The practice was ruled against in a 2018 decree involving Linear, but the study says it continues. The companies contacted denied or explained the findings.
- Company involved
- Genertel, Mps, Quixa, Con.Te
8 source articles · read the reporting →
Johnson / Estate of Fisher v. City of Annapolis (D. Maryland): AI-hallucinated content in court filing, (Attorney was dismissed by…
The AI generated fabricated case law and quotes that were included in a court filing, affecting the plaintiffs and the judicial process.
- Company involved
- City of Annapolis
1 source article · read the reporting →
Recurso de Suplicación 0005472/2025 (T.S.X. Galicia): AI-hallucinated content in court filing, Bar Referral
The AI generated false legal citations that were included in a court filing, misleading the court and potentially harming the client's case.
1 source article · read the reporting →
Aguilar v. The Crawford Group, Inc. (D. Massachusetts): AI-hallucinated content in court filing, Adverse Costs Order; Pro hac vice status…
The AI generated fake legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Lindemann Law Firm
1 source article · read the reporting →
Akerlund v. Atlas Air, Inc., et al. (11th Cir. CA): AI-hallucinated content in court filing, Bar Referral
The system generated fake legal citations that were included in a court filing, potentially misleading the court and prejudicing the client's case.
1 source article · read the reporting →