LinkedIn is currently embroiled in a lawsuit that alleges the platform shared user data and private messages with third parties for artificial intelligence training.

The proposed class action, filed on January 21, 2025, in a federal court in San Jose, California, represents millions of LinkedIn Premium customers.

Concerns have been raised about broader user data exposure across Microsoft products, especially since LinkedIn's integration into Microsoft's ecosystem after its acquisition in 2016.

As of January 2025, LinkedIn boasts over 175 million Premium users, generating approximately $1.7 billion annually, which constitutes about 39% of its total subscriber base.

The lawsuit claims that LinkedIn disclosed sensitive employment and compensation information to affiliates within Microsoft's corporate structure.

The plaintiffs are seeking $1,000 in statutory damages per person under the US Stored Communications Act, along with actual damages for reduced subscription value and injunctive relief to delete AI models trained on improperly disclosed data.

Users expressed outrage over LinkedIn's data sharing practices, prompting the company to modify its privacy policy to allow for opt-outs.

The case may lead to stronger regulations aimed at protecting individuals from unauthorized data sharing, with privacy advocates supporting these developments.

This legal action comes on the heels of President Donald Trump's announcement of a significant AI investment initiative involving Microsoft and other tech giants.

LinkedIn has faced previous data protection challenges, including a €310 million fine from Ireland's Data Protection Commission in October 2024 for violations of the EU General Data Protection Regulation.

Historically, LinkedIn has settled various lawsuits, including a $1.25 million settlement for a data breach in 2012 and a $6.6 million settlement in 2024 over inflated advertising metrics.

The lawsuit follows a privacy policy update on September 18, 2024, which stated that opting out of data sharing would not prevent past data from being used, raising concerns about user control over their information.