Sources
Incident summary from the AI Incident Database, used under CC BY-SA 4.0.
Home/AI Incident Database/$31,000 Sanction in Lacey v. State Farm Tied to Purportedly Undisclosed Use of LLMs and Erroneous Citations
$31,000 Sanction in Lacey v. State Farm Tied to Purportedly Undisclosed Use of LLMs and Erroneous Citations
In the case of Lacey v. State Farm, two law firms were sanctioned $31,000 after submitting a legal brief containing reportedly erroneous citations generated using AI tools. The court reportedly found that the lawyers failed to disclose the use of AI, neglected to verify its output, and refiled a revised brief with additional inaccuracies. Judge Michael Wilner deemed the conduct reckless and issued sanctions for what he described as "improper" and "misleading" legal filings.
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