AI recruiting startup Mercor hit with at least seven class-action lawsuits after hacking: What the company has to say
Mercor faces seven class-action lawsuits after a data breach exposed contractor information, including interviews and facial scans.Summary
Mercor, a Silicon Valley startup valued at $10 billion, is facing at least seven class-action lawsuits following a massive data breach that exposed private information of thousands of contractors. The breach, involving a third-party partner, leaked sensitive data ranging from recorded job interviews and facial scans to screenshots of workers' private computer screens. The lawsuits allege that Mercor engaged in controversial practices, such as tracking contractors' screens, sharing background checks in ways that may violate federal regulations, and using recorded video interviews to train AI models without proper disclosure. In response, Mercor called the lawsuits "speculative" and inaccurate, stating that they take privacy seriously and are conducting a thorough investigation with third-party forensics experts. As a result of the breach, Meta has already stopped working with Mercor and indefinitely suspended all work with the startup.
(Source：Times of India)