Refugee claimants strike out after Federal Court says their legal claim is AI fakery - National Post
The Federal Court rejected the refugee claimants' appeal due to AI-generated fake legal arguments.
- Company involved
- OWS Law
1 source article · read the reporting →
User loses lawsuit against tech company over AI-generated inaccurate information
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 source articles · read the reporting →
Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error
DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.
- Company involved
- Moonwell
- AI system involved
- Claude Opus 4.6
4 source articles · read the reporting →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE
Generated a legal brief with hallucinated case law, filed in court.
- AI system involved
- Claude
1 source article · read the reporting →
CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
1 source article · read the reporting →
Malaysia tests AI court sentencing, lawyer challenges harsh sentence
In Sabah, Malaysia, a lawyer's client faced a minor drug possession charge and was sentenced with the help of an AI tool that recommended a harsh penalty. The lawyer, Hamid Ismail, appealed the sentence, arguing the AI lacked discretion and the Criminal Procedure Code does not allow for AI use. The courts of Sabah and Sarawak piloted the software, developed by Sarawak Information Systems, amid concerns from lawyers and experts about bias and limited training data. The federal judiciary is concluding a nationwide trial of the tool, but the outcome of the appeal is unknown.
- Company involved
- Sabah and Sarawak Courts
3 source articles · read the reporting →
Where does SpaceXAI rank for air pollution in Shelby County? - WREG.com
The data center's operations emitted air pollutants affecting nearby residents
- Company involved
- SpaceXAI
- AI system involved
- Colossus 1
1 source article · read the reporting →
OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView
The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.
1 source article · read the reporting →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Giggle for Girls v Tickle [2026]: AI Facial Recognition, Gender Identity & Discrimination - Legal Service India
The system excluded a transgender woman from a women-only social networking app based on her facial appearance.
- Company involved
- Giggle for Girls Pty Ltd
- AI system involved
- Giggle App
1 source article · read the reporting →
Hallucination-laced TRO raises alarm bells on AI use by courts - Massachusetts Lawyers Weekly
A generative AI tool drafted a temporary restraining order in Jackson Federation of Teachers v. Fitch containing fabricated parties, declarations, and statutory language, affecting the state of Mississippi and the plaintiffs.
- Company involved
- U.S. District Court for the Southern District of Mississippi
1 source article · read the reporting →
Estate of Suzanne Adams sues OpenAI for wrongful death
The Estate of Suzanne Adams has filed a lawsuit against OpenAI, Microsoft, and Samuel Altman in California Superior Court, alleging that OpenAI's AI system caused her death. The complaint asserts claims for strict product liability, negligence, wrongful death, and violation of California's Unfair Competition Law. The case is pending.
- Company involved
- OpenAI
7 source articles · read the reporting →
Perplexity AI's Pages feature accused of plagiarizing Forbes reporting
Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.
- Company involved
- Perplexity AI
- AI system involved
- Perplexity Pages
10 source articles · read the reporting →
Sue Neill-Fraser: AI hallucinations in a parole decision (Tasmania)
The Parole Board imposed a condition preventing Susan Neill-Fraser from communicating with the media to claim innocence.
- Company involved
- Tasmania Parole Board
1 source article · read the reporting →
Allegheny County child neglect screening algorithm shows racial disparities
The Allegheny Family Screening Tool, an algorithm used to screen child neglect reports, has been found to flag a disproportionate number of Black children for mandatory investigation compared to white children. A technical glitch also presented wrong risk scores for over two years. County officials say social workers can override the algorithm and that the glitch has been fixed, but critics argue the tool hardens racial disparities and lacks transparency.
- Company involved
- Allegheny County Department of Human Services
- AI system involved
- Allegheny Family Screening Tool
10 source articles · read the reporting →
Illinois appeals court fines lawyer $15,000 for fictitious citations in Scott v. Illinois Human Rights Commission
In Scott v. Illinois Human Rights Commission, an Illinois Appellate Court case, a lawyer's filings contained fictitious legal citations and misquoted statutes. The court fined the lawyer $15,000 and referred the matter to the bar.
- AI system involved
- ChatGPT
1 source article · read the reporting →
Arizona sentence thrown out after judge influenced by AI-generated victim video
The AI-generated victim impact statement influenced the judge's sentencing of Gabriel Paul Horcasitas.
- Company involved
- Maricopa County Superior Court
1 source article · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
Microsoft, OpenAI Sued by Papers Seeking Removal From Models - FourWeekMBA
Microsoft, OpenAI Sued by Papers Seeking Removal From Models FourWeekMBA
- Company involved
- Microsoft and OpenAI
- AI system involved
- GPT models (ChatGPT, Copilot)
1 source article · read the reporting →
Cybercheck AI tool challenged in Akron homicide cases
Law enforcement in Akron, Ohio, used the AI tool Cybercheck to place two defendants at a murder scene. Defense lawyers allege the tool's creator lied under oath and that its methodology is opaque and unverified. Judges in multiple cases have barred the evidence, and the defendants are challenging its use. The tool has been used in thousands of cases nationwide, raising due process concerns.
- Company involved
- Akron Police Department
- AI system involved
- Cybercheck
3 source articles · read the reporting →
Airbnb bans users in Australia using trustworthiness algorithm
Airbnb is accused of using an algorithm acquired from Trooly to score users' trustworthiness based on publicly available data, including social media and occupation. Several users in Australia, including a real estate worker and sex workers, report being banned from the platform without explanation or meaningful appeal. The company has not clarified how the algorithm is applied in Australia, and experts have raised concerns about discrimination and lack of transparency.
- Company involved
- Airbnb
- AI system involved
- Trooly
4 source articles · read the reporting →
New York federal court sanctions lawyer for non-existent quotations after ChatGPT research
In Tiekert v. Village of Mamaroneck in the Southern District of New York, the court found that the plaintiff's lawyer filed briefs containing non-existent quotations and misrepresented authorities. In a filing to the court, the lawyer said ChatGPT had been used to assist with legal research. On September 14, 2026, the court imposed Rule 11 sanctions: $500 payable to the court and two New York continuing legal education credits in ethics on the use of AI.
2 source articles · read the reporting →
Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
1 source article · read the reporting →