Hallucinations & Sanctions

AI & Law, Hallucinations & Sanctions

Mavy v. Commissioner: Rule 11 Sanctions for AI Citations Partially Vacated — But Pro Hac Vice Revoked (D. Ariz., Jan 2026)

Attorney Maren Bam’s Rule 11 sanctions for recklessly filing AI-generated unverified citations in a Social Security case were largely vacated on appeal — because the sua sponte sanction process was not followed correctly. But her pro hac vice status in the case was revoked and her opening brief was struck, leaving real professional consequences.

AI & Law, Hallucinations & Sanctions

Lutfi v. Tucker: Australian Court Shows Leniency as Unrepresented Litigant Acknowledges AI Hallucinations (Jan 2026)

An Australian federal court found that a self-represented bankruptcy applicant had relied on AI-generated legal authorities that did not exist — but showed leniency because the applicant was unrepresented, acknowledged AI use, and did not press the fictitious authorities when challenged. The court distinguished this from lawyer misconduct.

AI & Law, Hallucinations & Sanctions

Lexos Media IP v. Overstock: Patent Attorneys Ordered to Show Cause for AI-Generated Defective Citations (D. Kan., Feb 2026)

A federal patent court in Kansas ordered all signing attorneys for patent plaintiff Lexos Media to show cause why they should not be sanctioned and referred to disciplinary administrators for submitting AI-generated defective legal citations in both a summary judgment response and an expert witness brief.

AI & Law, Hallucinations & Sanctions

Kleinschmidt v. Commissioner: Court Warns of ‘Phantom Case’ from Generative AI in Social Security Appeal (E.D. Mich., Jan 2026)

A Michigan federal court remanded a Social Security disability case while warning plaintiff’s counsel that a cited case — Fleck v. Commissioner of Social Security — appeared to be a ‘phantom’ case likely generated by AI. The court warned that future AI-generated unconfirmed citations could result in sanctions.

AI & Law, Hallucinations & Sanctions

Kaufman v. Upton: Attorney Referred to Bar Overseers for AI-Generated Nonexistent Citations (D. Mass., Jan 2026)

A Massachusetts federal court referred attorney Roger Peace to the Massachusetts Board of Bar Overseers after he submitted AI-generated citations to nonexistent authority and gave an evasive response to the court’s show-cause order. The referral — rather than a direct sanction — represents a new mechanism for AI citation accountability.

AI & Law, Hallucinations & Sanctions

Saber v. Navy Federal Credit Union: Pennsylvania Superior Court Flags LLM-Generated Non-Existent Citations (Jan 2026)

The Pennsylvania Superior Court published a decision in a car loan dispute where court submissions contained AI/LLM-generated citations to cases that do not exist. The Westlaw annotation explicitly identifies large language model (LLM) hallucinations as the source, marking one of the first state appellate courts to use that specific terminology.

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