Where automated decisions went wrong

DataOne asks court to toss noise lawsuit over Vineland data center - Courier-Post

The data center generated excessive and intrusive noise affecting neighbors in East Vineland.

Company involved

DataOne USA LLC

1 source article · read the reporting →

Lawyers from Ellis George and K&L Gates Sanctioned for AI-Generated Fake Citations

Attorneys from Ellis George LLP and K&L Gates LLP submitted a brief to a special master in the U.S. District Court for the Central District of California containing numerous hallucinated legal citations generated by AI tools including CoCounsel, Westlaw Precision, and Google Gemini. The lawyers failed to verify the citations, and even after being alerted to errors, filed a corrected brief that still contained fake authorities. Special Master Michael Wilner found the conduct tantamount to bad faith, struck the brief, denied discovery relief, and ordered the firms to jointly pay $31,100 in the defendant's legal fees.

Company involved

Ellis George LLP and K&L Gates LLP

AI system involved

CoCounsel, Westlaw Precision, Google Gemini

3 source articles · read the reporting →

In-house counsel group accuses rival of training AI on its materials - Reuters

In-house counsel group accuses rival of training AI on its materials Reuters

1 source article · read the reporting →

The New York Times sues Perplexity for copyright infringement

The New York Times filed a lawsuit against AI startup Perplexity, alleging the company illegally scraped and distributed its copyrighted content to generate search responses. Perplexity's spokesperson dismissed the suit, comparing it to past unsuccessful legal actions against new technologies. The case is pending in the Southern District of New York.

Company involved

Perplexity

4 source articles · read the reporting →

Authors protest Meta's use of pirated books for AI training

Authors and publishing professionals protested outside Meta's London office after discovering their copyrighted books were used to train Meta's AI models via the LibGen shadow library. A US court filing alleged that CEO Mark Zuckerberg approved the use of the database, which contains over 7.5 million books. The Society of Authors delivered a letter demanding accountability, and a group of authors is suing Meta for copyright infringement in the US. Meta stated that its use of information is consistent with existing law.

Company involved

Meta

4 source articles · read the reporting →

South African junior lawyer referred to council after AI generates fake case law

A junior advocate in South Africa used the AI tool Legal Genius to draft court submissions for an urgent licensing dispute. The written arguments contained multiple non-existent case citations, which the presiding judge discovered. The junior counsel admitted to using the AI tool, apologised, and was referred to the Legal Practice Council for investigation, while the senior counsel also apologised for conducting only a 'sense-check'.

Company involved

Northbound Processing legal team

AI system involved

Legal Genius

4 source articles · read the reporting →

Who's Suing the Georgia Meta Platforms Data Center? - Law.com

A Meta Platforms data center in Georgia allegedly ran afoul of local nuisance and trespassing laws, affecting local residents.

Company involved

Meta Platforms

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Sirius XM Wins Dismissal of AI-Fueled Racial Job Bias Claims (1) - Bloomberg Law News

The AI system screened and rejected job applicants, including Arshon Harper, who applied to 150 positions and received only one interview.

Company involved

Sirius XM Radio LLC

1 source article · read the reporting →

NAACP sues xAI, alleging unlawful operation of gas turbines in Southaven

The NAACP, represented by the Southern Environmental Law Center and Earthjustice, sued xAI and its subsidiary MZX Tech, alleging it ran dozens of methane gas turbines in Southaven, Mississippi, without a Clean Air Act permit to power its Colossus 2 AI data centre. The groups say the plant may be the largest industrial source of smog-forming nitrogen oxides in the Memphis area and that nearby, largely Black neighbourhoods bear the pollution. The US Justice Department later moved to have the case dismissed, citing national security.

Company involved

xAI

AI system involved

Colossus 2 power plant

1 source article · read the reporting →

Melbourne lawyer referred for using AI-generated fake case citations in family court

A Melbourne lawyer used AI software Leap to generate a list of case citations for a family court hearing. The citations were fake, causing the hearing to be adjourned. The lawyer apologized and paid costs, but was referred to the Victorian Legal Services Board and Commissioner for investigation. The software vendor Leap stated that a verification process was available but not used by the lawyer.

AI system involved

Leap

4 source articles · read the reporting →

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 →

ShotSpotter's defamation suit against Vice Media dismissed by Delaware court

ShotSpotter, the company behind the AI gunshot detection system, sued Vice Media for defamation over articles alleging it alters evidence at police request. The Delaware Superior Court dismissed the lawsuit, finding the statements were substantially true or opinion. Vice Media incurred legal costs defending itself, as Delaware's anti-SLAPP law does not allow recovery of fees in this case.

Company involved

ShotSpotter

AI system involved

ShotSpotter

9 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 →

FACIL'iti sues accessibility consultant Julie Moynat over critical tweet

In November 2020, Julie Moynat, a web accessibility consultant, tweeted criticism of FACIL'iti, an accessibility product. FACIL'iti sent a formal notice to her employer and later subpoenaed her for denigration in May 2021. Moynat is raising funds for her legal defense. The case is ongoing at the Judiciary Tribunal of Paris.

Company involved

FACIL'iti

AI system involved

FACIL'iti

10 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 →

Canary Islands court fines lawyer for AI-generated false case citations

The High Court of Justice of the Canary Islands fined a lawyer €420 for including 48 false case citations generated by a general-purpose AI tool in an appeal brief. The court found the lawyer failed to verify the citations against official databases, breaching the duty of veracity and good faith. The lawyer admitted the facts and expressed remorse, leading to a reduced fine. The court also referred the matter to the local bar association for possible disciplinary action.

Company involved

Tribunal Superior de Justicia de Canarias

4 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 →

NYT sends cease and desist to Perplexity over content use

The New York Times sent a cease and desist letter to AI search engine Perplexity, alleging that the startup has been using its copyrighted journalism without a license. The letter claims Perplexity has been 'unjustly enriched' by using the publisher's content. Perplexity had previously assured the Times it would stop crawling its content, but the Times says its content still appears in Perplexity's results.

Company involved

Perplexity

AI system involved

Perplexity

5 source articles · 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 →

Anonymous Spanish Lawyer (Tribunal Constitucional): AI-hallucinated content in court filing, Formal Reprimand (Apercibimiento) + Referral to Barcelona Bar for Disc

The AI system generated hallucinated content that was submitted in a court filing, potentially misleading the court.

1 source article · read the reporting →

Perplexity sued by Dow Jones for alleged copyright infringement

Perplexity, an AI search engine, was sued by Dow Jones, the publisher of the Wall Street Journal and New York Post, on October 21, 2024. The lawsuit alleges that Perplexity's AI reproduces copyrighted articles without permission. Perplexity denies the allegations and states it responded to outreach from News Corp before the lawsuit was filed.

Company involved

Perplexity

AI system involved

Perplexity

10 source articles · read the reporting →

Mag 7 Ltd. et al. v. Tederi et al. (District Court, Tel Aviv-Yafo): AI-hallucinated content in court filing, Monetary Sanction;…

The AI generated fabricated case law that was submitted to the court, affecting the legal proceedings.

1 source article · read the reporting →

Calcutta High Court questions ChatGPT exclusion of IndiaMART from search results

IndiaMART, an Indian B2B online marketplace, has petitioned the Calcutta High Court alleging that ChatGPT deliberately excluded it from search results. The company claims the exclusion was based on a United States Trade Representative report and caused loss of goodwill, reputation and commercial injury. The court observed there appeared to be selective discrimination but declined to pass interim orders before hearing the other side. The matter is listed for 13 January 2026.

Company involved

OpenAI

AI system involved

ChatGPT

4 source articles · read the reporting →