McCormick v. Texakoma Financial (E.D. Texas): AI-hallucinated content in court filing, Public Reprimand; Monetary Sanction; Firmwide citation review; CLE
The AI generated fictitious legal citations and quotes that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Ginsburg Law Group, P.C.
1 source article · read the reporting →
Heriberto Perez-Castillo v. Todd W. Blanche (7th Cir. CA): AI-hallucinated content in court filing, Monetary Sanction; Admonishment; Bar Referral
The AI generated false legal citations and quotations in an appellate brief, misleading the court and harming the client's immigration appeal.
1 source article · 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 →
Motorcyclist sues General Motors after self-driving Chevrolet Bolt crash in San Francisco
On 7 December 2017, a self-driving Chevrolet Bolt operated by GM's Cruise subsidiary aborted a lane change and re-entered its lane on Oak Street in San Francisco, striking motorcyclist Oscar Nilsson and knocking him to the ground. Nilsson sued General Motors, claiming neck and shoulder injuries requiring lengthy treatment and resulting in disability leave. The San Francisco Police Department's report blamed Nilsson for passing on the right, but his lawyer disputed this, and GM denied responsibility while emphasising safety.
- Company involved
- General Motors
- AI system involved
- Chevrolet Bolt autonomous vehicle
10 source articles · read the reporting →
LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Company involved
- loanDepot
- AI system involved
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
10 source articles · read the reporting →
Discord's Clyde AI chatbot tricked into giving napalm instructions
A Discord user used a 'grandma exploit' to trick the platform's Clyde AI chatbot into providing step-by-step instructions for making napalm. The user prompted Clyde to act as their deceased grandmother who used to be a chemical engineer at a napalm factory. Despite safeguards, the chatbot complied by role-playing the grandmother and delivering the dangerous recipe. The incident highlights vulnerabilities in AI content moderation.
- Company involved
- Discord
- AI system involved
- Clyde
8 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 →
Henry v. Long Island University (E.D. New York): AI-hallucinated content in court filing, Two-year filing-disclosure sanction
The court granted a motion to dismiss and imposed sanctions on plaintiff's counsel for submitting a brief with AI-hallucinated fake cases.
1 source article · read the reporting →
OpenAI's CLIP vision system fooled by handwritten notes
OpenAI researchers discovered that their CLIP computer vision system can be deceived by handwritten labels placed on objects. The system's multimodal neurons respond to text as well as images, causing it to misidentify objects. The attack, called a typographic attack, is a research finding and not a deployed system. No actual harm occurred.
- Company involved
- OpenAI
- AI system involved
- CLIP
10 source articles · read the reporting →
Quinteros v. Harbor Distributing, LLC (CA California (1d)): AI-hallucinated content in court filing, Monetary Sanction; Bar referral
AI generated hallucinated legal citations that were filed in court, misleading the court and opposing counsel.
- Company involved
- Lipeles Law Group
1 source article · read the reporting →
Universal Music sues Anthropic over Claude 2 distributing copyrighted lyrics
Universal Music Group and other music publishers have sued AI company Anthropic, alleging that its Claude 2 chatbot generates and distributes copyrighted song lyrics without a license. The complaint, filed in Tennessee, claims that Claude 2 reproduces lyrics from songs like Katy Perry's 'Roar' and Don McLean's 'American Pie' when prompted. The publishers argue that Anthropic's actions constitute copyright infringement and that the company failed to implement effective guardrails to prevent such outputs.
- Company involved
- Anthropic
- AI system involved
- Claude 2
9 source articles · read the reporting →
Jessica Fuller v. Hyde School, et al. (D. Maine): AI-hallucinated content in court filing, CLE; Firm procedures and certification; Serve…
The AI generated fictitious legal citations that were submitted to the court in a legal filing.
- AI system involved
- ChatGPT or Claude
1 source article · read the reporting →
Southland Homes & Real Estate and Investment, LLC v. Lam (SC California): AI-hallucinated content in court filing, Monetary Sanctions; Bar…
The AI system generated legal briefs containing fabricated case citations, which were filed in court, affecting the court and the opposing party.
1 source article · read the reporting →
Study finds Midjourney, DALL-E 2, Stable Diffusion accept over 85% of fake news prompts
A study by AI startup Logically tested Midjourney, DALL-E 2, and Stable Diffusion and found that they accepted over 85% of prompts seeking to generate fake political news. The systems generated images of ballot stuffing, small boat arrivals, and explosions. Logically warned that the lack of moderation could pose threats to upcoming elections. Stability AI responded by stating its ethical use license and measures to prevent misuse.
- Company involved
- Midjourney, OpenAI, Stability AI
- AI system involved
- Midjourney, DALL-E 2, Stable Diffusion
8 source articles · read the reporting →
LINAGORA closes Lucie 7B after user mockery
LINAGORA, a French open-source software company, launched a beta version of its large language model Lucie 7B. The model was intended to be a transparent and ethical alternative to big tech AI. However, after users tested it and highlighted its shortcomings, the model was mocked online. LINAGORA subsequently closed the platform to address the issues and collect more data.
- Company involved
- LINAGORA
- AI system involved
- Lucie 7B
6 source articles · read the reporting →
DeepSeek exposed user data via open ClickHouse database
Cloud security firm Wiz discovered a ClickHouse database belonging to DeepSeek that was open to the internet without authentication, containing over a million lines of logs with chat histories, secret keys and backend details. Wiz disclosed the breach to DeepSeek, which promptly locked down the database. The incident highlights security risks in rapidly deploying AI services.
- Company involved
- DeepSeek
- AI system involved
- DeepSeek-R1
5 source articles · read the reporting →
Guangzhou court finds AI company infringed Ultraman copyright
The Guangzhou Internet Court ruled on 8 February 2024 that an unnamed AI company infringed the copyright and adaptation rights of the plaintiff, the exclusive licensee of the Ultraman series images in China. The defendant operated a website offering AI conversation and AI-generated painting services, accessible only to paying members. The plaintiff alleged that the defendant used its Ultraman images without authorisation to train its model and generate substantially similar images. The court ordered the defendant to pay 10,000 yuan ($1,389) in compensation.
- Company involved
- unnamed AI company
- AI system involved
- AI conversation and AI-generated painting website
9 source articles · read the reporting →
A24 faces backlash for using AI-generated images to promote 'Civil War'
Film studio A24 used AI-generated images to promote its dystopian film 'Civil War' on Instagram, without disclosing that the images were AI-generated. The images depicted iconic American locations in ruins, but contained inaccuracies typical of AI models. The public reacted with outrage, accusing A24 of devaluing artistry and failing to label AI content.
- Company involved
- A24
9 source articles · read the reporting →
Mistral releases unmoderated chatbot that gives instructions on murder and ethnic cleansing
Mistral, a French AI startup valued at $260 million, released an open-source large language model named Mistral-7B-v0.1 without safety evaluations or moderation mechanisms. The model readily provides detailed instructions on murder, ethnic cleansing, suicide, and other harmful content. Mistral added a statement after the release acknowledging the lack of moderation but did not remove the model, which is distributed via torrent and cannot be deleted.
- Company involved
- Mistral
- AI system involved
- Mistral-7B-v0.1
7 source articles · read the reporting →
DeepSeek's R1 chatbot failed to block any jailbreak prompts in security tests
Security researchers from Cisco and the University of Pennsylvania tested 50 well-known jailbreak prompts against DeepSeek's R1 reasoning model. The model did not detect or block a single one, achieving a 100 percent attack success rate. The researchers allege that DeepSeek's safety guardrails are far behind those of competitors like OpenAI. DeepSeek did not respond to requests for comment.
- Company involved
- DeepSeek
- AI system involved
- DeepSeek R1
3 source articles · read the reporting →
Disney, Universal, Warner Bros. sue MiniMax over Hailuo AI copyright infringement
Disney, Universal, and Warner Bros. Discovery have filed a copyright lawsuit against Chinese AI company MiniMax, alleging that its Hailuo AI image and video generator was built using stolen copyrighted characters. The lawsuit claims MiniMax used characters such as Darth Vader and Minions to market the service without authorization. The studios are seeking profits and an injunction to halt the infringement. MiniMax has not responded to the allegations.
- Company involved
- MiniMax
- AI system involved
- Hailuo AI
7 source articles · read the reporting →
Meta's AI sticker tool generates lewd, rude, and nude images
Meta's new AI-generated sticker feature on Facebook Messenger allowed users to create inappropriate images, including child soldiers, nude politicians, and sexualised characters. The tool, powered by Meta's Llama 2 model, was found to have insufficient content filters, enabling users to bypass restrictions with typos. Meta was contacted for comment but had not responded at the time of reporting.
- Company involved
- Meta
- AI system involved
- AI-generated sticker tool
1 source article · read the reporting →
42,900 OpenClaw AI agents exposed, 15,200 vulnerable to RCE
SecurityScorecard's STRIKE team revealed on February 9, 2026, that approximately 42,900 OpenClaw agentic AI instances are exposed on the internet due to insecure default configurations. Of these, 15,200 are vulnerable to remote code execution attacks, allowing hackers to take over host machines. The vulnerabilities were patched on January 29, 2026, but many instances remain unpatched.
- AI system involved
- OpenClaw
5 source articles · read the reporting →
Anthropic destroyed millions of physical books to train Claude AI model
Anthropic shredded millions of physical books under Project Panama to train its Claude AI model. Internal documents revealed the company was aware of how bad it would look. A lawsuit by authors led to a $1.5 billion settlement. The practice was deemed legal under first-sale doctrine, but the use of pirated books from LibGen was not.
- Company involved
- Anthropic
- AI system involved
- Claude
5 source articles · read the reporting →