Ex-Employee and Rival Company Sued by Scale AI Over Alleged Theft of 100 Confidential Documents

Staff Reporter | PNN

Scale AI, a company that assists in AI model training through data preparation, has summoned its former sales executive Eugene Ling and rival company Merker to court. The lawsuit alleges that Ling stole more than 100 sensitive documents from Scale AI before joining Merker, including customer strategies and other confidential information.

The suit accuses Merker of illegally using trade secrets and Ling of breaching his employment contract. It also claims that Ling attempted to pitch to one of Scale AI’s largest clients, “Customer A,” for Merker before leaving his former company.

Merker co-founder Surya Midha stated that Merker has not used any of Scale AI’s information, although Ling may have some documents in his possession. He added that Merker offered to have Ling delete the documents or find a resolution and is now awaiting a response from Scale AI.

Ling told social media, “I did not use these documents with any malicious intent. Scale AI is choosing to drag me into this lawsuit.”

According to Scale AI, if Merker had won the Customer A account, it could have resulted in a multi-million-dollar contract for Merker. This lawsuit highlights Scale AI’s vigilance against potential threats from competitors and its willingness to take legal action to prevent them.