# AI data firm Sama shuts down amid lawsuits

> The contractor that moderated content for Meta and labeled data for OpenAI is liquidating after facing class-action litigation in Kenya and the US.
- Title: AI data firm Sama shuts down amid lawsuits · TIME | Shortify
- Summary: The contractor that moderated content for Meta and labeled data for OpenAI is liquidating after facing class-action litigation in Kenya and the US.
- Keywords: sama, meta, openai, content moderation, data labeling, class-action lawsuits, worker rights, kenya, liquidation, TIME
- Source: TIME — https://time.com/article/2026/11/09/sama-ai-data-liquidates-lawsuits-meta
- Author: Billy Perrigo
- Published: 2026-11-09T16:37:25.239+00:00
- Read time: 1 min
- Topics: sama, meta, openai, content moderation, data labeling, class-action lawsuits, worker rights, kenya, liquidation
## Sama winds down operations
The AI data annotation firm Sama is liquidating its assets, according to a letter to creditors dated November six reviewed by TIME.
## Lawsuits and competition cited
The letter blames declining revenues from increased competition and class-action litigation that would have required significant resources and years to defend successfully.

> declining revenues due to increased competition that was compounded by recent class action litigation that would have required significant resources and years to defend successfully
## Severe financial distress
An unaudited balance sheet shows Sama had approximately one million dollars in assets and seventeen million dollars in liabilities as of October.
## Work for Meta and OpenAI
Sama performed content moderation for Meta and data labeling for OpenAI. Employees said the work exposed them to traumatic content without adequate safeguards.
## Multiple legal battles
Sama and Meta face lawsuits in Kenya over allegations of worker exploitation, illegal termination, and suppression of unionization. Separate US class-action suits involve privacy violations from smart glasses work.
## Assets transferred for liquidation
On October twenty-three, Samasource Impact Sourcing transferred its assets to newly formed Sama ABC to oversee their sale and distribute proceeds to creditors. A bank holds priority claim to substantially all assets.
## Key takeaway

Sama, which performed content moderation for Meta and data labeling for OpenAI, is liquidating its assets after facing multiple class-action lawsuits over worker treatment and privacy violations.