University of Illinois Ends Proctorio Contract Over Accessibility Concerns
The University of Illinois at Urbana-Champaign announced it will not renew its emergency contract with Proctorio, an online proctoring software, citing significant accessibility, privacy, and equity concerns. Students reported that the AI system unfairly flagged individuals with disabilities, nonwhite students, and those wearing headscarves as suspicious during exams. The decision follows student petitions and campaigns against the software, which they described as invasive spyware. The university is exploring alternative assessment methods.
- Company involved
- University of Illinois at Urbana-Champaign
- AI system involved
- Proctorio
6 source articles · 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 →
Sixth Circuit Sanctions Lawyer for Using AI-Generated False Citations in Brief
Attorney Howe used Westlaw's CoCounsel AI to draft appellate briefs for a criminal defendant. The briefs contained fabricated quotations and misrepresented case holdings. The Sixth Circuit discovered the AI use from the file name and, upon investigation, found the citations false. Howe admitted he failed to adequately review the AI-generated content. The court denied compensation, appointed new counsel, and referred Howe for disciplinary proceedings.
- Company involved
- Howe's law office
- AI system involved
- Westlaw CoCounsel
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 →
Attorney Sanctioned $2,500 for AI-Hallucinated Citations in Brief
Heather Hersh, an appellate attorney, used generative AI to draft a reply brief in a Fair Credit Reporting Act case. The brief contained multiple fabricated legal quotations and inaccurate assertions. The Fifth Circuit Court of Appeals found that Hersh failed to verify the AI-generated content and was not candid about her use of AI, imposing a $2,500 monetary sanction under FRAP 46(c) and inherent authority. The court emphasised that attorneys must verify AI outputs and remain honest with the court.
- AI system involved
- Casetext / vLex
4 source articles · read the reporting →
Amazon sends cease-and-desist to Perplexity over AI shopping agent
Amazon sent a cease-and-desist letter to Perplexity, alleging that its Comet AI browser violates Amazon's terms of service by making purchases on behalf of users without disclosing its automated nature. Perplexity responded by calling the legal threat 'bullying' and argued that its bot does not need to identify itself. The dispute highlights tensions between AI agents and e-commerce platforms.
- Company involved
- Perplexity
- AI system involved
- Comet
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 →
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 →
DOGE's Flawed AI Tool Threatens Veterans Affairs Services
The Department of Government Efficiency developed an AI tool to identify unnecessary VA contracts, but it used outdated models and lacked context, leading to misclassification. At least 24 contracts were canceled, affecting cancer research and nurse care tools. The VA acknowledged the tool's role but stated all contracts undergo human review. Experts criticized the use of AI for such complex decisions.
- Company involved
- Department of Veterans Affairs
- AI system involved
- Muncher
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 →
Nippon Life Sues OpenAI Alleging ChatGPT Engaged in Unauthorized Practice of Law
Nippon Life Insurance Company of America filed a lawsuit against OpenAI, alleging that ChatGPT acted as an unlicensed attorney by advising a former disability claimant to reopen a settled case and drafting dozens of meritless motions. The insurer claims the AI's actions constitute unauthorized practice of law under Illinois statute and seeks $300,000 in compensatory damages. OpenAI has denied the allegations, calling the complaint meritless. The case is pending in federal court in Chicago.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
2 source articles · read the reporting →
Deloitte to refund Australian government after AI-generated report errors
Deloitte used generative AI (Azure OpenAI GPT-4o) to help produce an independent assurance review for Australia's Department of Employment and Workplace Relations. The report, published in July 2025, contained multiple errors including non-existent academic references and a fabricated court case. After the errors were flagged, Deloitte acknowledged the AI use and agreed to refund the final instalment of the A$439,000 contract. The report was corrected, but its substance and recommendations remained unchanged.
- Company involved
- Deloitte
- AI system involved
- Azure OpenAI GPT-4o
5 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 →
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 →
FTC settles with IntelliVision over deceptive facial recognition claims
The Federal Trade Commission (FTC) took action against IntelliVision Technologies Corp. for making false, misleading, or unsubstantiated claims about its AI-powered facial recognition software. The company allegedly claimed its software had one of the highest accuracy rates on the market and was free of gender or racial bias, without supporting evidence. The FTC also alleged that IntelliVision did not train its software on millions of faces as claimed, but on images of approximately 100,000 individuals. Under a proposed consent order, IntelliVision is prohibited from making such misrepresentations without competent and reliable testing.
- Company involved
- IntelliVision Technologies Corp.
- AI system involved
- IntelliVision facial recognition software
9 source articles · 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 →
IRCC uses AI triage for Temporary Resident Visa applications
Immigration, Refugees and Citizenship Canada (IRCC) uses an AI system called Advanced Analytics to triage Temporary Resident Visa applications from India and China. The system categorizes applications into tiers, with Tier 1 approved automatically and others sent to human officers. Critics allege the system lacks transparency and may introduce bias, leading to visa refusals without clear rationale. The author, a Canadian immigration lawyer, is filing Federal Court cases on behalf of clients affected by refusals.
- Company involved
- Immigration, Refugees and Citizenship Canada (IRCC)
- AI system involved
- Advanced Analytics Triage of Overseas Temporary Resident Visa Applications
10 source articles · read the reporting →
