AI Hallucination Case Stemming from Use of a Paralegal's AI-Based Research

AI hallucinations in court filings by prominent law firms are pervasive in the U.S. I'm seeing court decisions about this every few days .

The Second Circuit , as well as district courts across the country, have found the submission of nonexistent case citations in filings to the court to constitute sanctionable conduct.

Ms. Stillman 's conduct violated Rule 11 . She failed to conduct a reasonable inquiry into the viability of a pleading before it was signed.

A sanction of $ 1,000 is sufficient but not more than necessary to serve deterrence, the court says.

Ms Stillman acted with subjective bad faith, as required for the imposition of sua sponte sanctions.