A judge has fined two law firms, Ellis George and K&L Gates, $31,100 for submitting a brief with bogus AI-generated research in the case of Lacey v. State Farm Gen. Ins. Co. The trouble began when attorney Mr. Copeland from Ellis George used AI tools to generate an outline for a supplemental brief, which contained problematic legal research.
The outline was then sent to lawyers at K&L Gates, who incorporated the material into the brief without verifying the accuracy of the research. When the Special Master reviewing the case noticed discrepancies in the citations, the lawyers were alerted, but instead of disclosing the use of AI, they submitted a revised brief still containing multiple AI-generated errors.
The court concluded that the lawyers' actions demonstrated reckless conduct with the improper purpose of influencing the analysis of disputed privilege issues. The judge emphasized the importance of verifying information and taking responsibility for mistakes, highlighting that using AI without proper oversight can lead to serious consequences.
As a result, the court struck the supplemental briefs, denied the discovery relief sought by the plaintiff, and ordered the law firms to pay $31,100 in reimbursement for fees incurred by the defendant.
