Eightfold AI Faces US Class-Action Lawsuit Over Alleged FCRA Violations

Eightfold AI Inc, an AI hiring startup co-founded by Indian-origin entrepreneurs Ashutosh Garg and Varun Kacholia, faces a proposed class-action lawsuit in California alleging violations of the Fair Credit Reporting Act (FCRA). Plaintiffs Erin Kistler and Sruti Bhaumik claim the company collected and used sensitive job applicant information without consent. Eightfold AI's tools are used by major firms including Microsoft, PayPal, and government entities. The lawsuit, filed on January 20, is reportedly the first US case accusing an AI hiring firm of FCRA breaches.