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- OpenAI Faces Class-Action Lawsuit for Giving ChatGPT Data to Google, Meta
OpenAI Faces Class-Action Lawsuit for Giving ChatGPT Data to Google, Meta
Plus, Foxconn officially confirms North American factories hit by cyberattack.

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Matt Kelly and Kim T. Le have joined Simpson Thacher & Bartlett as partners. Kelly will be head of the firm’s AI Practice, while Le will be head of the West Coast Privacy and Cybersecurity team.
Ana Carolina Castellano has joined TikTok as privacy counsel (payments) for LATAM. She will be based in London.

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OpenAI Hit with Class-Action Privacy Lawsuit for Sharing ChatGPT Data with Google and Meta
OpenAI Global LLC is facing a new class action complaint in the Southern District of California that accuses the company of quietly wiring its ChatGPT web interface with Meta’s Facebook Pixel and Google Analytics, turning highly sensitive chatbot conversations into monetizable tracking data for online advertising ecosystems.
Filed by California resident Amargo Couture on behalf of all U.S. users who entered queries into ChatGPT.com, the suit claims OpenAI disclosed users’ chat topics, identifiers, and contact details to Meta and Google without consent, in violation of the federal Electronic Communications Privacy Act (ECPA), California’s Invasion of Privacy Act (CIPA), and state constitutional privacy rights.
According to the complaint, ChatGPT is routinely used to discuss “sensitive and personal topics” such as finances, health, and legal issues, with some estimates suggesting that a significant portion of company data pasted into ChatGPT is confidential.
Foxconn Confirms North American Factories Hit by Cyberattack
Taiwanese electronics manufacturing giant Foxconn has confirmed that some of its North American factories have been hit by a cyberattack.
“The cybersecurity team immediately activated the response mechanism and implemented multiple operational measures to ensure the continuity of production and delivery. The affected factories are currently resuming normal production,” Foxconn told SecurityWeek.
Foxconn, best known as the world’s largest provider of manufacturing services for Apple and other major global tech brands, confirmed being targeted by hackers after the Nitrogen ransomware group listed the company on its Tor-based leak website on March 12.
The hackers claim to have stolen 8TB of data representing more than 11 million files, including confidential documents and schematics related to major customers such as Intel, Apple, Google, Dell, and Nvidia.
The cybercriminals have published several screenshots to demonstrate their claims.
The AI Backlash Could Get Very Ugly
Steve Bannon and Bernie Sanders don’t agree on much. But both think that AI is a disaster for the working class. The Vermont senator recently wrote that “AI oligarchs do not want to just replace specific jobs. They want to replace workers.”
Bannon, Trump’s former chief strategist, made similar comments last week: Silicon Valley does “not care about the little guy,” he said in a podcast episode titled “Stopping the AI Oligarchs From Stealing Humanity.” This emergent “Bernie-to-Bannon” coalition points to the growing bipartisan anxiety over AI. In polls, the United States ranks among the countries most concerned about AI. America is both the world’s foremost developer of AI and its chief hater.
Recently, Maine passed the country’s first statewide data-center moratorium (though the bill was vetoed by the governor). Nationally, a record number of proposed projects were canceled in the first quarter of this year following local pushback.
How AI Hallucinations Are Creating Real Security Risks
AI hallucinations are introducing serious security risks into critical infrastructure decision-making by exploiting human trust through highly confident yet incorrect outputs. When an AI model lacks certainty, it doesn’t have a mechanism to recognize that. Instead, it generates the most probable response based on patterns in its training data, even if that response is inaccurate. These outputs may appear authoritative, making them especially dangerous when driving real-world security decisions.
Based on Artificial Analysis’s AA-Omniscience benchmark, a 2025 evaluation of 40 AI models found that all but four models tested were more likely to provide a confident, incorrect answer than a correct one on difficult questions. As AI takes on a larger role in cybersecurity operations, organizations must treat every AI-generated response as a potential vulnerability until a human has verified it.
Cyber risk intensifies for consumer products as budgets, and threats, rise
Based on insights from the RSM US Middle Market Business Index Special Report: Cybersecurity 2026, consumer products companies are navigating a cybersecurity landscape defined by growing business complexity, heightened threat activity and increasing operational risk. As organizations expand e commerce platforms, loyalty programs and supply chain integrations, cybersecurity has become inseparable from business resilience, directly affecting brand trust, uptime and financial performance.
That urgency is showing up in how middle market companies are allocating dollars. According to the survey report, 81% of respondents said they expect their cybersecurity budgets to increase over the coming year, signaling a broad shift in executive priorities.
IT spending patterns reinforce that trend: The share of companies allocating 16%−20% of their IT budgets to cybersecurity more than tripled from the prior year, rising from 4% to 13%, while those allocating more than 20% doubled from 2% to 4%. At the same time, the percentage of organizations spending less than 2% on cybersecurity fell sharply (from 11% to 4%).
An Executive Roundtable exploring the challenges companies are facing on evolving cybersecurity threats, ransomware and AI concluded that those firms most vulnerable include those that fail to recognize cybersecurity as a governance and potentially existential issue.
Experts also warned that when a cybersecurity event occurs, the average recovery time is 21 days, while the average amount of operating capital most middle-market firms maintain covers only 26 days.
Held in Chicago in April, the Beyond the SOC (Security Operations Center) roundtable featured a frank, in-depth discussion among a cross-disciplinary group of senior cybersecurity practitioners, financial services executives, legal counsel, insurance professionals and technology leaders – including officials who have managed some of the most high-profile cybersecurity breaches in the world.
