Scale AI, a company valued at $13.8 billion last year, is facing its third lawsuit in just over a month, with the latest allegations highlighting claims of psychological trauma suffered by workers reviewing disturbing content without adequate safeguards. Filed on January 17 in the Northern District of California, the class action complaint adds to the growing scrutiny of the company’s labor practices.
The six plaintiffs in the case claim they were tasked with creating and reviewing graphic prompts about violence and abuse, including child abuse, while working on Scale’s platform, Outlier. According to the lawsuit, these workers lacked proper psychological support and faced retaliation when seeking mental health assistance. They also allege that they were misled during hiring about the nature of the work, which led to long-term mental health issues such as PTSD. The plaintiffs are seeking the establishment of a medical monitoring program, new safety standards, and unspecified damages and attorney fees.
This lawsuit follows two earlier complaints filed against Scale AI. In December 2024, a former worker accused the company of misclassifying contractors and paying below minimum wage. That complaint’s lead plaintiff, Steve McKinney, is also involved in the latest filing. Earlier this month, another lawsuit raised similar allegations regarding worker misclassification and unfair compensation.
Scale AI relies heavily on contractors to perform tasks like evaluating AI model responses. While the company asserts that it complies with labor laws, the lawsuits raise questions about the treatment and support of its workforce.
Joe Osborne, a spokesperson for Scale AI, pushed back against the claims, calling the legal arguments from Clarkson Law Firm “misguided.” Osborne noted that Scale has “numerous safeguards” to protect workers, including advanced notice of sensitive material, the ability to opt out, and access to health and wellness programs. He also emphasized that Scale does not engage in projects involving child sexual abuse material.
This is not Clarkson Law Firm’s first lawsuit against a tech company. The firm previously filed a class action against OpenAI and Microsoft, which was dismissed after a judge criticized it for being overly lengthy and containing irrelevant details. Osborne referenced this in his comments, stating, “Clarkson Law Firm has previously — and unsuccessfully — gone after innovative tech companies with legal claims that were summarily dismissed in court.”
Glenn Danas, a partner at Clarkson Law Firm, countered these statements, accusing Scale of exploiting workers and failing to ensure a safe workplace. “We must hold these big tech companies like Scale AI accountable or workers will continue to be exploited to train this unregulated technology for profit,” Danas said.
As the lawsuits unfold, Scale AI faces mounting pressure to address concerns over worker treatment and workplace safety.
Featured image courtesy of LinkedIn
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