← All AI Failure Cases
Documented Consequence

Active Litigation

Cases with a documented consequence of Active Litigation - 4 documented cases in the AI Failure Cases repository.

Case 014 💼 Employment / HR Technology June 2026

Mobley v. Workday - Contested AI Hiring Discrimination Litigation

Derek Mobley filed a lawsuit against Workday, Inc. on February 21, 2023, in the U.S. District Court for the Northern District of California (No. 3:23-cv-00770), alleging that Workday's AI-powered applicant-screening too…

Case 009 🩺 Healthcare / Unauthorized Practice May 2026

Pennsylvania v. Character.AI - AI Impersonating a Licensed Psychiatrist

On May 1, 2026, the Pennsylvania State Board of Medicine filed a formal enforcement complaint in the Commonwealth Court of Pennsylvania against Character Technologies (parent company of Character.AI). An investigator di…

Case 015 🏥 Insurance / Healthcare Technology March 2026

UnitedHealth / nH Predict - Contested Algorithmic Role in Coverage Denials

In November 2023, the families of two deceased Medicare Advantage beneficiaries filed a class action, Estate of Gene B. Lokken et al. v. UnitedHealth Group, Inc. et al., in the U.S. District Court for the District of Mi…

Case 017 🦾 Robotics / Physical AI November 2025

Figure AI / Gruendel - Contested Robot Safety Whistleblower Litigation

Robert Gruendel joined Figure AI, Inc. as Principal Robotic Safety Engineer on October 7, 2024. He was terminated on September 2, 2025. On November 21, 2025, Gruendel filed a wrongful-termination and whistleblower-retal…