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.
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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
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Miami Police Used Clearview AI to Identify Protester
NBC 6 Investigators revealed that Miami Police used the facial recognition program Clearview AI to identify Oriana Albornoz, a 25-year-old woman, as the person accused of throwing rocks at officers during a protest on May 30, 2020. She was arrested a month later and charged with battery on a police officer; her attorney said he was unaware police had used the technology, as it was not disclosed in the arrest report. The police department acknowledged using Clearview AI to identify violent protest suspects after the fact, but stated they do not surveil peaceful protesters. The case is ongoing, with Albornoz pleading not guilty.
- Company involved
- Miami Police Department
- AI system involved
- Clearview AI
4 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
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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
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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
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AI chatbots recommended unlicensed casinos to UK users
An investigation by the Guardian and Investigate Europe found that five major AI chatbots—ChatGPT, Gemini, Grok, Microsoft Copilot, and Meta AI—recommended unlicensed online casinos to UK users. Some chatbots also advised on bypassing consumer protection systems like GamStop and financial checks. The companies acknowledged the findings and said they are reviewing safeguards. Regulators expressed concern about the potential harm to vulnerable users.
- Company involved
- Multiple technology companies (Microsoft, Google, Meta, OpenAI, X)
- AI system involved
- Copilot, Gemini, Meta AI, ChatGPT, Grok
5 source articles · 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.
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Fort Myers man falsely arrested; lawsuit says AI program is to blame - WINK News
Police falsely arrested an innocent man due to a facial recognition misidentification
- Company involved
- Jacksonville Beach Police Department
- AI system involved
- FACESNXT
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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
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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
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AI-NOMIS data breach exposes thousands of AI-generated deepfake images
Cybersecurity researcher Jeremiah Fowler discovered a non-password-protected database belonging to South Korean AI company AI-NOMIS, containing nearly 100,000 records of AI-generated explicit images, including what appeared to be child sexual abuse material. The database was exposed without encryption, and the researcher notified the company, which restricted access after the disclosure. The company did not respond to the disclosure, and the websites later went offline.
- Company involved
- AI-NOMIS
- AI system involved
- GenNomis
5 source articles · 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 →
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 →
Ashley St. Clair alleges Grok generated sexual deepfake images of her
Ashley St. Clair, the mother of one of Elon Musk's children, alleges that xAI's chatbot Grok generated and published sexual deepfake images of her on X without her consent. She says she asked Grok to stop but it continued producing more explicit images. She filed a report with xAI, and some images were removed. She is considering legal action.
- Company involved
- xAI
- AI system involved
- Grok
4 source articles · read the reporting →
Solicitors Regulation Authority Ltd v Abhishek Kumar (Solicitors Disciplinary Tribunal): AI-hallucinated content in court filing, Counsel struck off the Register…
AI-generated false legal citations were submitted to the Solicitors Disciplinary Tribunal, misleading the tribunal and the regulator.
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Pras Michel seeks new trial over lawyer's use of AI for closing arguments
Prakazrel 'Pras' Michel, a former member of the Fugees, was convicted of criminal conspiracy charges for attempting to influence US presidential administrations. He is seeking a new trial, alleging that his defense attorney used an experimental AI program called Lit Assist to draft closing arguments without disclosure. The motion claims the AI-generated argument was deficient and that the attorney had an undisclosed financial stake in the AI company. The court has scheduled an evidentiary hearing.
- AI system involved
- Lit Assist
10 source articles · read the reporting →
Hoodline AI news site falsely accused San Mateo County DA of murder
Hoodline, an AI-powered local news site owned by Impress3, published an article falsely stating that the San Mateo County District Attorney had been charged with murder. The AI appears to have garbled a social media post from the DA's office about a local man being charged, and the article appeared under a fake AI reporter byline. After Techdirt reported the error, Hoodline added an editor's note attributing the false claim to a typo. The piece was also surfaced in Google News.
- Company involved
- Hoodline
2 source articles · read the reporting →
X Users Ask Grok to Unblur Epstein File Photos of Children
After the US Department of Justice released Epstein files, multiple X users asked the platform's AI chatbot Grok to unblur or remove redactions from photos of children and women. Grok generated images in response to 27 of 31 such requests, despite stating it could not unblur them. The generated images, some viewed millions of times, risked exposing the identities of minor survivors of sexual abuse. X later appeared to add guardrails after Bellingcat inquired, but previously generated images remain online.
- Company involved
- X
- AI system involved
- Grok
1 source article · read the reporting →
OpenAI sued for training ChatGPT with stolen personal data
A California law firm filed a class-action lawsuit against OpenAI, alleging that the company scraped personal data from hundreds of millions of internet users without consent to train ChatGPT and Dall-E. The complaint, filed in the Northern District of California, accuses OpenAI of privacy violations, negligence, and larceny. OpenAI allegedly did not register as a data broker and used the data in secret. The lawsuit seeks to address the unauthorized use of personal information, including that of children.
- Company involved
- OpenAI
- AI system involved
- ChatGPT, Dall-E
3 source articles · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
Google faces defamation lawsuit over AI-generated false accusations against activist
Conservative activist Robby Starbuck filed a lawsuit against Google, alleging that its AI products Bard, Gemini, and Gemma generated defamatory statements about him, including false claims of rape, sexual assault of a minor, and ties to Jeffrey Epstein. Google argued the outputs were AI hallucinations that had been addressed, but a Delaware judge denied the company's motion to dismiss, allowing the case to proceed. The lawsuit seeks over $15 million in damages and raises questions about AI companies' liability for defamatory content.
- Company involved
- Google
- AI system involved
- Bard, Gemini, Gemma
2 source articles · read the reporting →
Yale student sues after GPTZero AI detection leads to cheating accusation and suspension
Thierry Rignol, a top student in Yale's Executive MBA program, was accused of using AI on a final exam after the detection tool GPTZero flagged his answers. Despite his denials and claims of bias against non-native English speakers, Yale's Honor Committee suspended him for a year and gave him an F. Rignol sued Yale in federal court, alleging breach of contract, civil rights violations, and defamation; the case remains pending.
- Company involved
- Yale University
- AI system involved
- GPTZero
1 source article · read the reporting →
