market · May 22, 2026
Mercor Faces Multiple Class-Action Lawsuits Over Data Breach Affecting Contractors
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Mercor, the San Francisco-based AI talent platform valued at $10 billion, faces at least six class-action lawsuits filed in federal courts in California and Texas by contractors seeking damages exceeding $5 million for a data breach. The suits allege exposure of personal information including Social Security numbers, birth dates, passports, facial and voice biometric data, recorded video interviews, background checks, and screenshots captured by monitoring software Insightful during work sessions. The breach, tied to a supply-chain compromise of the open-source LiteLLM project, involved roughly four terabytes of data including a 3TB drive with video and verification data, and was confirmed around March 30-31, 2026. Meta has paused its work with Mercor and is investigating the incident while Mercor disputes the claims and states it acted quickly to remedy the breach affecting thousands of companies.