A Figma lawsuit tracker as of mid-2026 covers four active or recent matters: a proposed class action by a user over AI training that a federal judge has sent to arbitration, a settled copyright fight Figma brought against competitor Motiff, an unresolved trademark dispute with Swedish startup Lovable over the term “Dev Mode,” and a securities-law investigation into Figma’s July 2025 IPO disclosures. None has produced a judgment on the merits.
Khan v. Figma: The AI Training Class Action
The highest-profile case is Khan v. Figma Inc., No. 3:25-cv-10054, filed November 21, 2025 in the U.S. District Court for the Northern District of California. Plaintiff Raza Khan alleged that Figma trained its generative AI models on proprietary user designs without consent, contradicting earlier company promises not to use customer content that way. The complaint brought claims for trade secret misappropriation, breach of contract, and unauthorized use of user-generated work, and argued that Figma used customer designs to boost its valuation ahead of its $1.2 billion IPO.1KR Law. Figma Lawsuit Opens Door to New Damages Claims2Bloomberg Law. Figma Trained AI on User Data Without Consent, Class Action Says Ahdoot & Wolfson and Freedman Normand represent Khan.3Law360. UI Design Giant Figma Trained AI With User Data, Suit Says
According to the complaint, users were opted in to Figma’s AI training program through new terms of service the company introduced during its pivot to AI features, without adequate notification or authorization.1KR Law. Figma Lawsuit Opens Door to New Damages Claims
The Arbitration Ruling
On May 8, 2026, Judge Charles R. Breyer granted Figma’s motion to compel arbitration and stayed the case. The court found that Khan had agreed to Figma’s terms of service, which incorporated the American Arbitration Association’s Consumer Arbitration Rules. Under Ninth Circuit precedent, that incorporation counts as “clear and unmistakable evidence” that the parties agreed to let an arbitrator decide threshold questions of arbitrability. The court rejected Khan’s unconscionability arguments and held that his arguments under the McGill rule, which limits class action waivers touching public injunctive relief, must also go to the arbitrator first.4Justia. Khan v. Figma, Order Granting Motion to Compel Arbitration5Bloomberg Law. Startup Founder Must Arbitrate AI Training Claims Against Figma
The ruling left a narrow return path: if the arbitrator decides Khan’s claims fall within a carve-out in the arbitration agreement, he may resume the federal case.4Justia. Khan v. Figma, Order Granting Motion to Compel Arbitration The federal action remains stayed.
A Separate Investigation
Independently, Freedman Normand Friedland and Greenbaum Olbrantz have been investigating potential class claims on behalf of users who held free or professional accounts before August 15, 2024. No separate lawsuit had been filed as of June 2026.6Top Class Actions. Figma AI Training Class Action Lawsuit Investigation
The AI Policies Behind the Lawsuit
The Khan claims trace back to policy changes Figma made in 2024. At Config 2024, Figma rolled out AI features. On July 1, 2024, developer Andy Allen publicly accused the new “Make Design” feature of generating outputs that closely resembled Apple’s Weather app. CEO Dylan Field denied that the tool had been trained on Figma user content or existing app designs, blaming low variability in commissioned design systems and insufficient quality assurance. Figma disabled the feature on July 2, 2024, pending a full review.7TechCrunch. Figma Disables Its AI Design Feature That Appeared to Be Ripping Off Apple’s Weather App
Figma then set August 15, 2024 as the date it would begin training proprietary AI models on customer data. Starter and Professional users were opted in by default; Organization and Enterprise customers were opted out by default. Teams that had disabled Figma’s AI features before June 26, 2024 were treated as opt-in rather than opt-out. Education and Government accounts were excluded.8Figma. Manage AI Settings and Content Training for Your Team or Organization
Figma’s current AI terms, effective March 11, 2026, state that the company uses “Customer Content” to train machine learning and AI models only when the “Content Training” toggle is enabled in administrative settings. Turning the toggle off means new content and edits after that point are not used for training, and customers retain all rights to their input and output.9Figma. AI Terms Figma’s privacy policy, updated May 27, 2026, states that data used for AI training is de-identified and aggregated.10Figma. Privacy Policy
Figma v. Motiff: Copyright Suit, Settled
Not every Figma case has Figma as a defendant. On September 16, 2024, Figma sued Singapore-based Motiff Pte. Ltd. and its Chinese affiliates Yuanfudao HK Ltd. and Kanyun Holding Group Co. in the Northern District of California. Figma alleged that Motiff accessed its product under a subscription agreement, reverse-engineered its copyrighted source code, and used it to build a competing design tool. The complaint asserted breach of contract and copyright infringement, and pointed to matching “features and flaws” as evidence of copying.11Bloomberg Law. Figma Sues Motiff, Accusing It of Stealing Design Software Code Figma sued Motiff in Singapore the same day for copyright and trademark infringement.12Figma. Figma and Motiff Reach Global Settlement in Intellectual Property Protection Lawsuits
A global settlement took effect July 23, 2025. Motiff agreed to stop selling its editor tool, and any future derivative product, everywhere except mainland China. In mainland China, Motiff may continue selling the existing tool for one year while it reengineers the product. Motiff also agreed to reimburse Figma’s legal expenses.12Figma. Figma and Motiff Reach Global Settlement in Intellectual Property Protection Lawsuits
The “Dev Mode” Trademark Standoff With Lovable
Figma sent a cease-and-desist letter to Lovable, a Swedish AI startup, over Lovable’s use of the term “Dev Mode” for a feature that lets users view code in the editor. Figma registered “Dev Mode” as a U.S. trademark in 2024, alongside its “Design Mode” and “Prototype Mode” labels. The letter demanded that Lovable rename the feature and remove the term from its website, interface, and marketing.13Trama TM. Figma Sends Cease and Desist Letter to Swedish Startup Over DevMode
Lovable CEO Anton Osika rejected the demand publicly, calling “Dev Mode” a descriptive, industry-standard term used by companies like Wix, Atlassian, and Shopify. After Osika posted the letter on X, developer commentary largely sided with Lovable, arguing the term is too generic for exclusive protection.13Trama TM. Figma Sends Cease and Desist Letter to Swedish Startup Over DevMode Whether Figma will escalate to litigation is not publicly known.
Securities Investigation Into the IPO
Figma priced its IPO at $33 per share on July 31, 2025, selling nearly 37 million Class A shares and raising more than $1.2 billion.14CNBC. Figma (FIG) Starts Trading on NYSE After IPO15Figma. IPO Pricing The stock briefly traded above $140 before falling to around $22 by February 2026, an 81% drop from peak and a 33% decline from the IPO price. Analysts attributed the fall to staggered lockup expirations, a sector rotation away from application software toward AI infrastructure names, and decelerating revenue growth. In November 2025, executives sold roughly $35 million in shares at prices between $43 and $48, timed around the Q3 earnings report.16TradingView. Why Figma Stock Crashed 81%
In March 2026, the law firm Lowey Dannenberg, P.C. opened an investigation into whether Figma’s IPO registration statements contained materially misleading statements or omissions. The firm invited investors who bought shares in or traceable to the IPO and suffered losses to contact it. No securities lawsuit had been filed at the time of the announcement, and the specific statements under scrutiny have not been publicly detailed.17GlobeNewsWire. Lowey Dannenberg Is Investigating Figma Inc. for Potential Violations of the Federal Securities Laws
What About the Adobe Deal?
The failed Adobe acquisition is sometimes lumped in with Figma’s legal history, but it did not produce a lawsuit against Figma. Adobe announced the deal on September 15, 2022, and the two companies terminated it by mutual agreement on December 18, 2023, after EU and UK competition regulators raised concerns and the U.S. Department of Justice conducted its own review. Adobe paid a previously agreed termination fee.18Adobe. Adobe and Figma Mutually Agree to Terminate Merger Agreement