market · May 22, 2026
Mercor Faces Lawsuit Over Data Breach Exposing Contractor Biometrics and Interviews
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Mercor, the $10 billion AI training feedback startup that has worked with clients including OpenAI, Anthropic, and Meta, faces at least seven class-action lawsuits following a data breach that exposed contractor information such as job interview recordings, facial biometric data, and computer screenshots. The suits claim Mercor monitored contractors' computers via software, shared applicant-vetting data with partners in potential violation of regulations, and used recorded interviews to train AI models. The breach stemmed from a LiteLLM supply-chain attack and prompted Meta to pause cooperation with Mercor while investigating. Mercor disputes the speculative claims, states it takes privacy seriously, complies with laws, conducted a thorough investigation with third-party forensics experts, and communicated with affected stakeholders.