Scale AI Sues Rival Startup Mercor, Alleging Trade Secret Theft

Scale AI, a prominent data-labeling startup, has filed a lawsuit against its rival, Mercor, alleging the theft of trade secrets. According to the lawsuit, a former Scale employee joined Mercor and is accused of taking confidential information to help the rival company attract new business. The complaint claims that Mercor and the former Scale employee engaged in a "coordinated scheme" to misappropriate Scale's trade secrets, including customer information, pricing data, and details about the company's technology and services. Scale argues that this action has caused it significant financial and reputational harm. The lawsuit seeks to prevent Mercor from using the allegedly stolen information and requests damages to compensate for the alleged theft. This legal dispute highlights the competitive nature of the data-labeling industry and the importance of protecting intellectual property in the technology sector.