All: this thread discusses two distinct lawsuits. Originally there were two threads, but I merged them (see https://news.ycombinator.com/item?id=26900217). Sorry! Now they're blended and there's not enough energy to reverse the entropy, so you'll need to track which is which as you read the thread.
One is discussed in the OP. The other URL was https://twitter.com/Linkletter/status/1385004344903290883, but that doesn't give any background. There's more here:
https://www.theverge.com/2020/10/22/21526792/proctorio-onlin...
https://www.eff.org/deeplinks/2021/02/student-surveillance-v...
Edit: It turns out there have been quite a few previous threads too. Pointers to those at https://news.ycombinator.com/item?id=26907558.