AI Hallucinations in Legal Filings: Morgan & Morgan Warns Lawyers of Consequences

Curated by THEOUTPOST

On Wed, 19 Feb, 8:05 AM UTC

9 Sources

Share

Morgan & Morgan, a major US law firm, warns its attorneys about the risks of using AI-generated content in court filings after a case involving fake citations. The incident highlights growing concerns about AI use in the legal profession.

AI-Generated Legal Citations Spark Controversy at Morgan & Morgan

In a recent development that has sent shockwaves through the legal community, Morgan & Morgan, one of America's largest personal injury law firms, has issued a stern warning to its attorneys about the dangers of using artificial intelligence (AI) to generate legal citations. This comes in the wake of a high-profile incident where two of the firm's lawyers cited non-existent cases in a lawsuit against Walmart, potentially facing sanctions from a federal judge in Wyoming 12.

The Incident and Its Implications

The case in question involved an allegedly defective hoverboard toy that purportedly caused a house fire. Rudwin Ayala, the lead attorney on the case, cited eight cases that Walmart's lawyers could not find anywhere except on ChatGPT. This incident has not only embarrassed Morgan & Morgan but also highlighted the growing risks associated with the unchecked use of AI in legal practice 1.

T. Michael Morgan, who replaced Ayala on the case, expressed "great embarrassment" over the fake citations and agreed to pay all fees and expenses associated with the errant court filing. He described the incident as a "cautionary tale" for both his firm and the legal profession at large 1.

Widespread Concerns in the Legal Community

This is not an isolated incident. Reuters reports that lawyers improperly citing AI-hallucinated cases have disrupted litigation in at least seven cases over the past two years 12. Some lawyers have faced sanctions, including fines and mandatory AI education courses. For instance:

  1. In June 2023, two New York lawyers were fined $5,000 for citing AI-invented cases in a personal injury lawsuit against an airline 23.
  2. A Texas federal judge ordered a lawyer to pay a $2,000 penalty and attend a course on responsible AI use in legal applications 12.
  3. In Minnesota, a misinformation expert's credibility was questioned after admitting to unintentionally citing fake AI-generated citations 23.

The Double-Edged Sword of AI in Law

Despite these risks, the use of AI in legal practice is becoming increasingly common. A July 2024 Reuters survey found that 63% of lawyers have used AI, with 12% using it regularly 1. AI tools are helping reduce the time needed for legal research and drafting, leading many firms to adopt or develop their own AI solutions 24.

However, the technology's tendency to "hallucinate" or generate false information poses significant challenges. Andrew Perlman, dean of Suffolk University's law school, emphasizes that using AI-generated citations without verification is "incompetence, just pure and simple" 23.

Morgan & Morgan's Response

In response to the incident, Morgan & Morgan has taken several steps:

  1. Issuing an urgent email to all attorneys warning of potential termination for using AI-generated fake cases 23.
  2. Implementing a checkbox system requiring attorneys to acknowledge AI's potential for hallucinations before accessing the firm's internal AI platform 1.
  3. Discussing and implementing further policies to prevent future occurrences 1.

The Path Forward

As AI becomes more intertwined with legal practice, experts stress the need for increased AI literacy among legal professionals. Harry Surden, a law professor at the University of Colorado, recommends that lawyers spend time learning "the strengths and weaknesses of the tools" 23.

The American Bar Association has also weighed in, reminding its 400,000 members that their ethical obligations extend to "even an unintentional misstatement" produced through AI 24.

As the legal profession grapples with these new challenges, it's clear that while AI offers powerful capabilities, it must be used with caution and thorough verification to maintain the integrity of legal proceedings.

Continue Reading
MyPillow CEO's Lawyers Face Scrutiny for AI-Generated Legal

MyPillow CEO's Lawyers Face Scrutiny for AI-Generated Legal Brief with Numerous Errors

Lawyers representing Mike Lindell, CEO of MyPillow, are under fire for submitting an AI-generated legal brief containing multiple errors, including citations to non-existent cases. The incident raises concerns about AI use in legal proceedings.

Ars Technica logoMashable logoFuturism logoHuffPost logo

4 Sources

Ars Technica logoMashable logoFuturism logoHuffPost logo

4 Sources

AI Avatar's Court Appearance Sparks Controversy and

AI Avatar's Court Appearance Sparks Controversy and Judicial Rebuke

An AI entrepreneur's attempt to use an AI-generated avatar for legal representation in a New York court backfires, raising questions about the role of AI in legal proceedings and the boundaries of courtroom technology.

The Verge logotheregister.com logoAP NEWS logoGizmodo logo

15 Sources

The Verge logotheregister.com logoAP NEWS logoGizmodo logo

15 Sources

US Law Firms Embrace AI: Balancing Innovation with Ethical

US Law Firms Embrace AI: Balancing Innovation with Ethical Concerns

US law firms are increasingly adopting AI technologies to enhance efficiency and competitiveness, while navigating complex ethical and practical challenges. This trend is reshaping legal practices and education.

Financial Times News logo

7 Sources

Financial Times News logo

7 Sources

Misinformation Expert's Affidavit Compromised by

Misinformation Expert's Affidavit Compromised by ChatGPT-Generated False Citations

Stanford professor Jeff Hancock admits to using ChatGPT for organizing citations in a legal document supporting Minnesota's anti-deepfake law, leading to AI-generated false information in the affidavit.

Benzinga logoWccftech logo

2 Sources

Benzinga logoWccftech logo

2 Sources

AI-Generated Lawyer Avatar Sparks Controversy in New York

AI-Generated Lawyer Avatar Sparks Controversy in New York Courtroom

A 74-year-old plaintiff's attempt to use an AI-generated lawyer avatar in a New York courtroom backfires, raising questions about the use of artificial intelligence in legal proceedings.

PetaPixel logoFuturism logo

2 Sources

PetaPixel logoFuturism logo

2 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved