Mercor Data Breach Fallout Accelerates — 5 Lawsuits Filed, Meta Freezes AI Data Work, $10B Valuation at Risk

TechCrunch·high signal

The Mercor breach (LiteLLM supply chain attack, 4TB stolen, 40K+ contractors exposed) is now in full fallout: 5 contractor lawsuits filed in one week including a proposed nationwide class action, Meta indefinitely paused all Mercor work over fears of AI training data exposure, and big-name customers are reportedly leaving. The lead case (Gill v. Mercor) alleges no MFA, unencrypted PII, and no password rotation. OpenAI is still investigating; Anthropic has not commented.