LinkedIn is embroiled in a lawsuit alleging that it shared user data and private messages with third parties for AI training purposes.

The lawsuit highlights significant privacy concerns, particularly regarding the potential misuse of personal data in the tech industry amid the rise of AI technologies.

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

Concerns have been raised about broader user data exposure across Microsoft products due to LinkedIn's integration into Microsoft's ecosystem following its acquisition in 2016.

LinkedIn's privacy policy, updated on September 18, 2024, indicated that opting out of data sharing would not prevent the use of previously shared information.

Customers in certain regions, including Canada and the EU, are exempt from having their data used for AI training, while US customers face a default setting that permits data sharing.

The lawsuit seeks $1,000 in statutory damages per person under the Stored Communications Act, along with actual damages for reduced subscription value.

The plaintiffs argue that LinkedIn's policy update was an attempt to cover up previous violations of data sharing laws.

With over 175 million Premium users worldwide, the potential financial implications of the lawsuit could be substantial, although a payout of $90 billion is deemed unlikely.

LinkedIn has faced previous legal challenges, including a €310 million fine from Ireland's Data Protection Commission in October 2024 for unauthorized data use.

The lawsuit may prompt stronger regulations to protect individuals against unauthorized data sharing, with privacy advocates supporting these developments.

Users have expressed outrage over LinkedIn's data sharing practices, leading to modifications in the company's privacy policy.