A lawsuit from 26 Meta employees alleges the company used AI-driven scoring and monitoring systems to select workers for layoffs, disproportionately targeting employees with disabilities or those who had taken protected medical, family, pregnancy, or parental leave. "Meta did not assemble the termination list through the considered judgment of managers who knew the work. Instead, Meta used a constellation of internal artificial-intelligence systems -- including a system referred to internally as 'Metamate,' employee-trained 'second-brain' agents, keystroke- and activity-monitoring data, AI-token-usage dashboards, and algorithmically assisted performance ranking and calibration -- to score, rank, and select employees for inclusion on the list," the lawsuit (PDF) said. Ars Technica reports: Employees were allegedly graded, among other things, on how much they used Meta's AI tools. "Meta's internal dashboards classified employees by their stage of adoption of its artificial-intelligence tools, using categories such as 'AI Native,' 'AI First,' and 'AI Enabled,'" the lawsuit said. The lawsuit is apparently "the first against a major U.S. company to challenge the alleged use of AI in conducting layoffs," according to Reuters. The complaint alleges that Meta's tools for monitoring employees did not account for differences caused by disabilities and protected leaves. "Those tools draw on inputs -- performance ratings, calibration scores, productivity and output metrics, 'AI-native' ratings, and AI-token consumption -- that, by design, cannot be accumulated by an employee who is on protected medical or family leave, or whose output is reduced by a disability," the lawsuit said. The lawsuit alleged that Meta management did not take steps to adjust scores for employees who took leave or who requested reasonable accommodations for disabilities. "Meta did not neutralize those inputs for protected leave; did not exclude protected-leave-takers or accommodation-seekers from the selection cohort; and did not pause the system for the individualized, leave- and accommodation-neutral review that the law requires," the complaint alleged. "The result was that employees who took protected leaves were disproportionately selected for layoff, based on scoring that not only failed to account for their protected leaves, but in effect penalized the employees for exercising their legal rights to these leaves." The 26 plaintiffs requested leaves or disability accommodations in the 24 months before being selected for layoffs, the lawsuit said. The layoffs are not yet finalized, but employees are scheduled to start losing their jobs on July 22, the lawsuit said. "These claims lack merit and are not based on facts," said Meta in a statement. "Workforce management and organizational decisions were and are made by people, not AI."

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An anonymous reader quotes a report from the BBC: StubHub and its CEO, Eric Baker, have been hit with a proposed $5-million class-action lawsuit in the United States over the company's ties to large-scale scalpers -- connections reported by CBC News last week. The suit, filed Monday by New York ticket buyer Louis Sanquini, alleges deceptive practices and fraudulent misrepresentation over StubHub's promoting itself as a "marketplace for fans to buy and sell tickets." The online ticket resale giant has faced a storm of customer complaints after cancelling thousands of World Cup tickets. The company has repeatedly said it is simply a technology platform that does not buy, sell or possess tickets. However, CBC reported last week that Baker disclosed in recent filings with the U.S. Securities and Exchange Commission that he runs Andro Capital, a hedge fund that engages in large-scale resale of millions of dollars' worth of sports and concert tickets on the StubHub resale platform. Sanquini filed the proposed class action in the Southern District of New York, arguing consumers were kept in the dark and that he believed StubHub was a "neutral" marketplace. Lead counsel Kevin Steinberg told CBC News in an emailed statement that "consumers deserve honesty and transparency." A CBC investigation found that the CEO of online ticket reseller StubHub owns and manages a hedge fund that scalps millions of dollars of its own tickets. "While what StubHub is alleged to have engaged in and perpetrated upon millions of patrons is unfathomable, this case is about transparency and consumer trust. If companies make representations to the public, consumers are entitled to expect that those representations are complete and accurate," he said. The claim reads: "Defendants' failure to disclose this conflict of interest, while affirmatively marketing StubHub as a fan-to-fan marketplace, deceived Plaintiff and the Class and caused them to pay prices, and accept terms, they would not have accepted had the truth been known." Sanquini argues that had he known StubHub's CEO held a financial interest and that the company was helping finance professional resellers, he would never have used the resale site to buy tickets to see rock band Kiss in 2023 or to attend a New York Red Bulls-New York City FC Major League Soccer match in 2024.

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