Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…
The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.
- Company involved
- X.AI Corp and MZX Tech LLC
- AI system involved
- Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines
1 source article · read the reporting →
Ever app used users' photos to train facial recognition tools without clear consent
Millions of people uploaded photos to the Ever app for storage. The company used those photos to train its Ever AI facial recognition system and offered the technology to private companies, law enforcement and the military. Most users interviewed said they were unaware of this use, and privacy experts described it as an invasion of privacy. Ever stated its privacy policy disclosed the practice and added an opt-out pop-up after being contacted by NBC News.
- Company involved
- Ever
- AI system involved
- Ever AI facial recognition
6 source articles · read the reporting →
Attorneys in three lawsuits aimed at Nebius AI Factory work to consolidate parts of cases - WVTM
The Nebius AI Factory data center construction produced noise, dust, vibrations and raised concerns about power and water use affecting nearby residents and the Greater Birmingham Humane Society.
- Company involved
- Nebius AI Factory
- AI system involved
- Nebius AI Factory
1 source article · read the reporting →
Høyesterett receives first court brief with fabricated AI legal sources
In early 2025, a lawyer submitted a brief to the Norwegian Supreme Court in a civil case that contained laws and legislative history invented by an AI tool. Supreme Court staff discovered the non-existent sources during routine review. The court stated the lawyer had not checked the AI-generated sources before filing and raised the matter with the lawyer, but no sanctions were imposed. Høyesterett updated its attorney guide to require quality-checking of AI output.
1 source article · read the reporting →
Grammarly pulls AI tool that impersonated writers without consent
Grammarly, operated by Superhuman, disabled its Expert Review AI feature that offered writing suggestions in the style of famous authors like Stephen King and Julia Angwin. The tool used writers' names and personas without consent, leading to a class-action lawsuit filed in New York alleging misappropriation of identities for commercial gain. Investigative journalist Julia Angwin described the imitation as a 'slopperganger' that gave poor advice. Superhuman's CEO apologised, acknowledging the tool had 'misrepresented' the voices of experts, and the company removed it for redesign.
- Company involved
- Superhuman
- AI system involved
- Grammarly Expert Review
5 source articles · read the reporting →
Fake AI law firm sends DMCA threats for SEO backlinks
Ernie Smith, writer of the Tedium newsletter, received a DMCA copyright notice from 'Commonwealth Legal', a firm that appears to be entirely fabricated using AI-generated images and text. The notice demanded he add a backlink to the gadget review site Tech4Gods for a keyfob photo legitimately sourced from Unsplash. The scheme is designed to generate fake SEO gains through backlinks, and Smith did not receive any follow-up after the stated deadline.
- Company involved
- Commonwealth Legal
- AI system involved
- Generative Adversarial Network (GAN) model
1 source article · read the reporting →
Supreme Court strikes down NCLT order based on AI-hallucinated judgments
The National Company Law Tribunal admitted an insolvency petition against Essel Infraprojects, relying on six AI-generated citations that were later found to be non-existent or misattributed. Essel Infraprojects appealed, and the Supreme Court set aside the order, calling the use of fake judgments catastrophic. The court directed the Bar Council of India to examine AI use in litigation and ordered a fresh decision.
- Company involved
- National Company Law Tribunal
1 source article · read the reporting →
Claude Code deletes developer's production database and snapshots
Alexey Grigorev used Claude Code to manage infrastructure with Terraform for his websites AI Shipping Labs and DataTalks.Club. Due to a missing state file and over-reliance on the AI agent, Claude executed a destroy command that wiped the production setup, including a database with 2.5 years of records and snapshots. Amazon Business support helped restore the data within a day. Grigorev is now implementing safeguards to prevent recurrence.
- Company involved
- AI Shipping Labs
- AI system involved
- Claude Code
2 source articles · read the reporting →
Morgan & Morgan lawyers cite fictional cases generated by AI chatbot
Lawyers at Morgan & Morgan filed a legal brief in a case against Walmart that cited nine cases, eight of which were entirely fictional. The firm admitted that an AI chatbot had generated the non-existent cases. Morgan & Morgan apologised for the error.
- Company involved
- Morgan & Morgan
10 source articles · read the reporting →
Chicago Tribune sues Perplexity AI for copyright infringement
Chicago Tribune Company, LLC filed a lawsuit against Perplexity AI, Inc. in the Southern District of New York on December 4, 2025. The complaint alleges copyright infringement under 17 U.S.C. § 501. The case is assigned to Judge Loretta A. Preska.
- Company involved
- Perplexity AI, Inc.
5 source articles · read the reporting →
Woody Nora v. M & A Transport, Inc., et al. (E.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; 1…
The AI tool generated fictitious case law citations that were included in a court filing, affecting the plaintiff and the court.
- AI system involved
- Westlaw Precision
1 source article · read the reporting →
Bunce v. Visual Technology Innovations (2) (E.D. Pennsylvania): AI-hallucinated content in court filing, Monetary Sanction, Additional CLE
The AI generated fabricated legal citations in a court filing, misleading the court and opposing counsel.
- Company involved
- Mr. Rajan
1 source article · read the reporting →
Estée Lauder settles with make-up artists sacked by algorithm
Three MAC make-up artists were dismissed after failing a video interview that was scored by HireVue's algorithm. They appealed but received no clear explanation of how the system assessed them. Estée Lauder Companies settled the resulting legal challenge out of court. HireVue later discontinued the visual analysis component of its video interview platform.
- Company involved
- Estée Lauder Companies
- AI system involved
- HireVue
2 source articles · read the reporting →
Ferris v. Amazon.com Services (N.D. Mississippi): AI-hallucinated content in court filing, Plaintiff ordered to pay Defendant’s reasonable costs related to…
The AI generated fabricated legal citations that were submitted to the court, affecting the defendant and the judicial process.
1 source article · read the reporting →
Sullivan & Cromwell apologises for AI hallucinations in court filing
Sullivan & Cromwell, an elite Wall Street law firm, used an AI tool to help draft a court filing in the Prince Group case. The filing contained inaccurate citations and misquoted the US bankruptcy code due to AI hallucinations. The errors were uncovered by opposing counsel Boies Schiller Flexner, and the firm apologised to the judge and filed a corrected version. The firm stated that its AI policies were not followed and its review process failed to catch the mistakes.
- Company involved
- Sullivan & Cromwell
3 source articles · read the reporting →
EEOC sues iTutorGroup for automated rejection of older tutor applicants
The US Equal Employment Opportunity Commission (EEOC) alleges that tutoring provider iTutorGroup programmed its recruitment software automatically to reject female applicants aged 55 or older and male applicants aged 60 or older. More than 200 qualified US-based applicants were denied work in 2020. The EEOC has filed a lawsuit in the Eastern District of New York seeking back pay and damages.
- Company involved
- iTutorGroup
10 source articles · read the reporting →
Evans v. Robertson (4) (E.D. Michigan): AI-hallucinated content in court filing, Briefs (both sides) struck
The AI system generated hallucinated legal citations in court filings, causing the court to strike the briefs of both plaintiff and defendant.
1 source article · read the reporting →
CanLII sues Caseway AI for scraping legal database
The Canadian Legal Information Institute (CanLII) has filed a lawsuit in British Columbia Supreme Court against Caseway AI, alleging that the company's AI chatbot scraped approximately 3.5 million records from CanLII's database in bulk, violating its terms of service and copyright. CanLII claims it adds value to public court records through hyperlinks and corrections, which it says constitute protected copyrighted work. Caseway AI argues the information is public and accessible elsewhere, and that it did not use CanLII's enhancements. The lawsuit was settled in March 2026, with terms undisclosed.
- Company involved
- Canadian Legal Information Institute (CanLII)
- AI system involved
- Caseway
5 source articles · read the reporting →
Erin Booker v. The Kroger Co. (N.D. Georgia): AI-hallucinated content in court filing, Monetary Sanctions; CLE
The court imposed monetary sanctions and continuing legal education requirements on plaintiff's counsel for using AI-generated fake legal authorities in a court filing.
1 source article · read the reporting →
Adobe uses Creative Cloud user data to train AI
Adobe's content analysis feature may scan Creative Cloud and Document Cloud files to train machine learning models, including object recognition in Lightroom and Liquid Mode in Acrobat. The company says it may analyze images, audio, video, text and other documents stored on its servers. Adobe offers an opt-out in account privacy settings, but the article notes the company did not ask first.
- Company involved
- Adobe
- AI system involved
- Content analysis
10 source articles · read the reporting →
TOV Realty, LLC v. Suarez; Kosel Equity, LLC v. MacGregor (SC Connecticut): AI-hallucinated content in court filing, 6 hours CLE;…
The AI generated legal briefs containing fabricated citations, which were submitted to the Connecticut Supreme Court.
- Company involved
- GLG Law LLC
- AI system involved
- ChatGPT
1 source article · read the reporting →
In re Rosslyn2016, LLC, et al. (S.D. Texas (Bankruptcy)): AI-hallucinated content in court filing, CLE on generative AI; Civil Contempt;…
The AI generated fabricated legal citations that were submitted to the bankruptcy court.
1 source article · read the reporting →
Beus Gilbert PLLC v. Brigham Young University et al. (D. Utah): AI-hallucinated content in court filing, Two AI-ethics CLE courses;…
The AI system generated fake legal citations that were included in a court filing, misleading the court and opposing counsel.
1 source article · read the reporting →
Reaves Law Firm, PLLC v. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, et al. (W.D. Tennessee): AI-hallucinated content in court…
The AI generated fictitious legal authorities and arguments that were filed in a court motion, misleading the court and opposing counsel.
- Company involved
- Reaves Law Firm, PLLC
1 source article · read the reporting →