ChatGPT Lawsuit: The 'Project Lily' Class Action Over Human Review of Chats
Two California ChatGPT users sued OpenAI in San Francisco federal court on September 16, 2026, claiming the company never clearly told users that outside contractors read real conversations to grade the chatbot's answers. As of September 25, 2026, the case is nine days old: there is no settlement, no certified class and no claim form, and OpenAI's response is due October 13, 2026.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Lawsuit Claims
The complaint alleges that ChatGPT is presented as a private, one-to-one exchange with a machine, while OpenAI "retains hundreds of outside contractors—working for third-party firms—whose job is to read the conversations that ChatGPT users have with the product and to grade the product’s answers." It says the internal codename for this work is "Project Lily", first reported by 404 Media on September 14, 2026.
According to the complaint, reviewers recruited through a staffing firm are shown a real user's prompt, sometimes the entire conversation, write a short summary of what the user wanted, and score four ChatGPT responses on a scale from one to seven. The plaintiffs claim an automated privacy filter does not always remove personal details, and that people use ChatGPT for health, mental-health, relationship, financial and legal questions.
The core claim is an omission: OpenAI's Terms of Use and Privacy Policy explain that conversations may be used to improve its models, and a content-moderation page linked from the Privacy Policy says flagged content can be reviewed, but, the plaintiffs say, they never state that third-party contractors may read conversations for model improvement. The complaint pleads eight claims: California's Unfair Competition Law, Consumers Legal Remedies Act, False Advertising Law and Consumer Privacy Act, plus fraudulent omission and concealment, intrusion upon seclusion, invasion of privacy and unjust enrichment. These are allegations; no court has ruled on them.
Case Details
Vredenburgh et al. v. OpenAI OpCo, LLC, Case No. 3:26-cv-10527, U.S. District Court for the Northern District of California (San Francisco). Filed September 16, 2026 by Alexandra Vredenburgh (Carlsbad, CA) and Paul Coutu (San Francisco). Assigned to Magistrate Judge Alex G. Tse. Plaintiffs' counsel: Victor J. Sandoval, Almeida Law Group LLC. Sources: court docket and complaint (PDF).
Where the Case Stands (September 25, 2026)
Coming up: OpenAI's answer or other response is due October 13, 2026 (deadlines like this are often extended by agreement). The parties must also file by September 30 whether they consent to a magistrate judge; if a party declines, the case is reassigned to a district judge. A case management statement is due December 11, and the first case management conference is set for December 18, 2026.
An early question to watch: OpenAI's consumer Terms of Use (effective January 1, 2026) contain mandatory arbitration and a class action waiver, with an opt-out only within 30 days of creating an account or of an update to those terms. The complaint does not address that clause. Whether OpenAI tries to push the claims into individual arbitration, and how the court rules, may decide whether this ever becomes a class case.
Don't miss the claim deadline
Claims are due by October 13, 2026. We'll email you 7 days and 1 day before the deadline.
Who Could Be Covered
The complaint proposes four groups, all limited to "the applicable statute of limitations period": a nationwide class of everyone in the United States who used ChatGPT; a California subclass; a subscriber subclass of people who paid for a ChatGPT subscription (such as Plus or Pro); and a California subscriber subclass.
These are only proposed definitions. No class has been certified, and a judge could narrow them, reject them or never reach them if the case ends early. If a class is ever certified or a settlement is reached, members would normally be notified. You do not need to sign up anywhere to be included in a proposed class.
Is There Money in It?
Realistically, cases like this take years, and many are dismissed or sent to arbitration before a class is certified. Past settlements over human review of voice-assistant recordings (Apple Siri, Google Assistant) paid consumers small amounts per person, but those were different products, claims and facts, and they say nothing about how this case will end. Treat any site quoting a "ChatGPT settlement payout" as fiction.
ChatGPT 'Project Lily' Lawsuit Timeline
- 1
September 14, 2026 — 404 Media Reports 'Project Lily'
An investigation reports that contractors read real ChatGPT conversations to grade the model's answers. The complaint relies on this reporting.
- 2
September 16, 2026 — Class Action Filed
Vredenburgh et al. v. OpenAI OpCo, LLC, No. 3:26-cv-10527 (N.D. Cal.), assigned to Magistrate Judge Alex G. Tse.
- 3
September 18, 2026 — Summons and Scheduling Order
The court issues the summons and sets the initial case management conference for December 18, 2026.
- 4
September 21, 2026 — OpenAI Served
Proof of service filed; OpenAI OpCo, LLC's answer is due October 13, 2026.
- 5
October 13 and December 18, 2026 — Next Deadlines
OpenAI's response is due October 13 (a motion to dismiss or to compel arbitration is possible); first case management conference December 18.
Watch Out For
New AI lawsuits attract copycat pages fast. Three things to watch on this search:
"ChatGPT settlement claim form" pages
There is no settlement and no official claim form. A page that asks for your ChatGPT login, payment details or a fee to "register" for this case is not a court process.
Mixing up OpenAI lawsuits
OpenAI faces many unrelated suits: Raine v. OpenAI is a wrongful-death case filed in San Francisco Superior Court in August 2025, and the New York Times, Authors Guild and others are suing over copyright in In re OpenAI, Inc. Copyright Infringement Litigation (S.D.N.Y., MDL No. 3143). Neither is this privacy case, and neither has a consumer claim form.
Sign-up forms that are really lead forms
Many "join the ChatGPT lawsuit" forms pass your details to law firms for advertising. That is not the same as joining the case; read who receives your data before you submit anything.
ChatGPT Lawsuit — FAQ
Is there a ChatGPT class action settlement?
No. The Project Lily lawsuit was filed on September 16, 2026, and OpenAI has not even responded yet. No settlement has been announced in this case.
Is there a ChatGPT lawsuit claim form?
No. Claim forms only exist after a settlement or judgment is approved by a court. Any form available today is not an official claim form for this case.
How do I join the ChatGPT lawsuit?
You don't have to. If you used ChatGPT in the United States during the limitations period, you fall within the proposed nationwide class as written. If a class is certified or a settlement is reached, notice would go out and explain your options. Hiring your own lawyer is optional.
Can I get money from the ChatGPT lawsuit?
Not now, and possibly never. The complaint seeks damages but names no amount. OpenAI's terms contain an arbitration clause and class action waiver, which could keep the case from proceeding as a class. Any payout would depend on a settlement or a win that is years away, if it comes at all.
Did humans really read ChatGPT conversations?
That is what 404 Media reported and what the lawsuit alleges; OpenAI has not answered the complaint yet, and no court has made findings. OpenAI's Terms of Use say your content may be used to train its models unless you opt out, and, as the complaint itself quotes, OpenAI discloses that its team "may review flagged content." The dispute is whether it clearly disclosed routine reading by outside contractors.
Can I stop my chats from being used to train ChatGPT?
Yes. OpenAI's Terms of Use say you can opt out of having your content used to train its models, which is the "Improve the model for everyone" setting in ChatGPT. Turning it off is up to you and does not affect whether you are part of the proposed class.
Is this the same as the New York Times lawsuit against OpenAI?
No. The New York Times case is a copyright dispute, now part of a consolidated proceeding in federal court in New York. The Project Lily case is a consumer privacy class action in San Francisco. They have different plaintiffs, courts and claims.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.