Eightfold Faces Lawsuit Over Candidate Blacklisting

A lawsuit filed last week in California by nonprofit Towards Justice and plaintiffs including Erin Kistler accuses Eightfold AI of silently blacklisting qualified job candidates by collecting and scoring consumer data without disclosure. The complaint alleges the vendor uses LLM-driven profiles and external web data to generate match scores, potentially violating the Fair Credit Reporting Act and exposing employers, including major banks, to legal and compliance costs.