Scale AI Sues Rival Startup Mercor, Alleging Secrets Theft (1)

Scale AI Inc. sued rival data-labeling startup Mercor, accusing the firm and a former Scale employee of stealing trade secrets to attract new business.

The suit, filed in San Francisco federal court Wednesday, alleges that Scale’s former head of engagement management, Eugene Ling, downloaded more than 100 customer strategy documents and other proprietary documents to a personal Google Drive while in communication with Mercor.

Ling allegedly met with Mercor Chief Executive Officer Brendan Foody while working at Scale, and other Mercor employees discussed Scale’s business strategies and products with Ling, according to the lawsuit.

Surya Midha, a Mercor co-founder, said ...