Jan 22 (Reuters) - Microsoft's ( MSFT ) LinkedIn has

been sued by Premium customers who said the business-focused

social media platform disclosed their private messages to third

parties without permission to train generative artificial

intelligence models.

According to a proposed class action filed on Tuesday night

on behalf of millions of LinkedIn Premium customers, LinkedIn

quietly introduced a privacy setting last August that let users

enable or disable the sharing of their personal data.

Customers said LinkedIn then discreetly updated its privacy

policy on Sept. 18, 2024 to say data could be used to train AI

models, and in a "Frequently Asked Questions" hyperlink said

opting out "does not affect training that has already taken

place."

This attempt to "cover its tracks" suggests LinkedIn was

"fully aware" it violated customers' privacy, and its promise to

use personal data only to support and improve its platform, to

minimize public scrutiny and legal fallout, the complaint said.

The lawsuit was filed in the San Jose, California, federal

court on behalf of LinkedIn Premium customers who sent or

received InMail messages, and whose private information was

disclosed to third parties for AI training before Sept. 18.

It seeks unspecified damages for breach of contract and

violations of California's unfair competition law, and $1,000

per person for violations of the federal Stored Communications

Act

Microsoft ( MSFT ) did not immediately respond on Wednesday to

requests for comment. A lawyer for the plaintiffs had no

immediate additional comment.

The lawsuit was filed several hours after U.S. President

Donald Trump announced a joint venture among Microsoft ( MSFT )-based

OpenAI, Oracle and SoftBank, with a potential

$500 billion of investment, to build AI infrastructure in the

United States.

The case is De La Torre v LinkedIn Corp, U.S. District

Court, Northern District of California, No. 25-00709.