Scale AI, a company valued at $13.8 billion, is facing its third lawsuit in just over a month concerning its labor practices. The latest class action complaint, filed on January 17 in the Northern District of California, accuses Scale AI of causing psychological harm to six individuals who worked on its platform, Outlier. The plaintiffs allege they endured psychological trauma from reviewing disturbing content without sufficient safeguards in place.
This lawsuit comes as part of a series of legal actions spearheaded by the Clarkson Law Firm of Malibu, California. The firm, which previously filed a class action suit against OpenAI and Microsoft over allegedly using stolen data, is representing the plaintiffs in both complaints against Scale AI. The firm's legal actions have previously targeted innovative tech companies, with some claims dismissed in court for being "needlessly long" and containing "largely irrelevant, distracting, or redundant information."
The complaint highlights the reliance of Scale AI on workers categorized as contractors to perform tasks such as rating AI model responses. One of the plaintiffs, Steve McKinney, is also the lead plaintiff in a separate complaint filed in December 2024 against Scale AI. A similar complaint was lodged that same month, further spotlighting ongoing issues with the company's labor practices.
Plaintiffs claim that the nature of their work involved "forcing workers to view gruesome and violent content to train these AI models," as stated by their attorney Glenn Danas. This exposure allegedly occurred without the necessary protections, leading to significant psychological distress.
Scale AI, however, maintains that it has "numerous safeguards in place" to protect its contributors. These measures include allowing workers to opt-out at any time, providing advanced notice of sensitive content, and offering access to health and wellness programs. The company asserts that it complies with all applicable laws and regulations and plans to defend itself vigorously against the latest allegations.
Earlier this month, a former worker filed a lawsuit claiming she was misclassified as a contractor and effectively paid below the minimum wage. This adds to the growing scrutiny over how Scale AI manages its workforce, specifically those categorized as independent contractors.
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