Mealey's Artificial Intelligence : Mealey's : Legal News & Analysis

Mealey's Artificial Intelligence

August 21, 2025
Facing $70,000 In Fees, Lawyer Urges Education As Sanction For AI Citations

PITTSBURGH — A lawyer told a federal judge in Pennsylvania that he immediately took responsibility for artificial intelligence-generated errors in briefing filed in a libel case and that imposing more than $70,000 in attorney fees as a sanction would be ruinous and punitive rather than corrective.
August 20, 2025
Judge: Humana Must Face Some Claims In AI Benefits Processing Case

LOUISVILLE, Ky. — Because plaintiffs’ claims largely focus on whether their contract with their health insurer permits the use of artificial intelligence in the claims review process and not actual benefits determinations under the Medicare Act, they are not preempted, a federal judge in Kentucky said in denying in part a motion to dismiss.
August 20, 2025
Man Says Otter Notetaker Records, Saves Conversations Without Consent

SAN JOSE, Calif. — A California man alleges that Otter.ai Inc. does not obtain prior consent of all participants in a virtual meeting before its Notetaker transcription app is engaged to record a conversation, leveling claims of computer fraud, invasion of privacy and unfair competition against the artificial intelligence (AI) technology firm in California federal court.
August 19, 2025
Texas Opens Investigation Into Character.AI, Meta Over Chatbot Marketing

AUSTIN, Texas — The Texas attorney general announced Aug. 18 that he is investigating Meta AI Studio and the company behind Character.AI for deceptively and misleadingly marketing their chatbots to children and other vulnerable individuals as mental health resources.
August 19, 2025
Community Service Ordered For Pro Se Plaintiff’s Use Of AI, Fake Cites

MIAMI — A federal magistrate judge in Florida ordered a pro se plaintiff to perform 10 hours of community service for submitting briefing containing 11 fake cites generated by artificial intelligence and said that in any future filings the plaintiff must certify whether he used AI and that he verified any AI-generated content.
August 18, 2025
Expert Used AI, Submitted Fake Cites, Quotes, State Defendants Say

BATON ROUGE, La. — An expert who submitted dozens of fake articles and quotations likely created by artificial intelligence can never be found to be competent or reliable and must be excluded by the court, state officials defending an age verification law tell a federal judge in Louisiana in an Aug. 15 motion.
August 18, 2025
Class Responds To Anthropic, Amici’s Attempt At Immediate Appeal

SAN FRANCISCO — A class of copyright holders told the Ninth Circuit U.S. Court of Appeals in opposition to artificial intelligence company Anthropic PBC’s petition for an immediate appeal of a class certification ruling that summary judgment in the case left only allegations that Anthropic PBC pirated and retained works en masse and that any claim that a verdict would be a death knell for the company is undercut by an agreement to cap the appellate bond at $5 billion.
August 15, 2025
Getty Images Dismisses AI Copyright Suit With Intent To Refile In California

WILMINGTON, Del. — Getty Images (US) Inc. on Aug. 14 notified a federal judge in Delaware that it was seeking voluntary dismissal of its artificial intelligence copyright suit without prejudice so that it may refile the action in a California federal court where Stability AI Ltd. argued the case properly belonged.
August 15, 2025
Windows 10 User Says Microsoft Stopping Tech Support To Boost Its AI

SAN DIEGO — A consumer filed a suit in California state court against Microsoft Corp. over its plans to cease offering technical support for its Windows 10 operating system (OS) in October 2025, claiming that it wants to drive users onto newer Microsoft products that use artificial intelligence so it can “monopolize the generative AI market” and failed to disclose that Windows 10 licenses were temporary in violation of California’s unfair competition law (UCL).
August 14, 2025
Musk Must Mount Fight Against UCL Counterclaims In OpenAI Suit, Judge Says

SAN FRANCISCO — Elon Musk must face California unfair competition law (UCL) counterclaims stemming from his media interactions touting his attempts to buy OpenAI Inc. assets because the conduct is sufficiently divorced from courthouse advocacy to fall outside litigation privilege protections, a federal judge in California said, while also dismissing his breach of implied covenant and Racketeer Influenced and Corrupt Organizations Act claims.
August 14, 2025
Medical Providers Want Lawyers Disqualified For Expert’s AI Use

SALT LAKE CITY — Two attorneys in a False Claims Act lawsuit should be disqualified for their role in submitting an expert whose artificial intelligence-generated report included a “litany of made-up quotes and sources,” medical providers say in Aug. 13 filings arguing that monetary sanctions are insufficient and that the court should stay the case.
August 13, 2025
Anthropic, Amici Ask 9th Circuit For Review Of Class, Fair Use Rulings

SAN FRANCISCO — A ruling denying summary judgment on claims that Anthropic PBC pirated and kept copyrighted works and a second one certifying a class of potentially impacted copyright holders is replete with individuality issues and notice manageability problems and the rushed class ruling prematurely forces the company to grapple with the possibility of billions of dollars in business-ruining damages, the company and various amici curiae tell a Ninth Circuit U.S. Court of Appeals panel in seeking immediate appeal.
August 13, 2025
Judge Won’t Clarify How Opinion Came To Include Errors

JACKSON, Miss. — A Mississippi federal judge who withdrew an opinion containing references to nonexistent parties, factual allegations and declarations denied a motion to preserve that opinion and for clarification, saying nothing required a court to preserve an opinion that was corrected and that the request for clarification exceeds Federal Rule of Civil Procedure 60.
August 13, 2025
Attorney Who Lost Husband Won’t Be Sanctioned For AI Errors

CENTRAL ISLIP, N.Y. — A federal judge in New York said he would not impose sanctions on an attorney whose filing included artificial intelligence-generated errors, noting that while such conduct currently plagues the justice system, in this case, the attorney recently lost her husband, acknowledged the impact that had on her work and indicated that she took steps to ensure that the mistake did not happen again.
August 12, 2025
Judge Won’t Stay AI Case While Anthropic Appeals Class Cert, Fair Use Rulings

SAN FRANCISCO — Any appeal by Anthropic PBC of a ruling rejecting fair use defenses for pirating copyrighted works or granting class certification should involve a full record, and to the extent going to trial financially threatens the artificial intelligence company, that reality would be the outcome of its own conduct, a federal judge in California said Aug. 11 in declining to stay the case pending appeal.
August 12, 2025
Magistrate Judge: Nonparty Microsoft Must Produce Licensing Info In AI Suit

SAN FRANCISCO — Nonparty Microsoft Corp. must produce documents related to artificial intelligence training material licensing deals because the evidence goes to the existence of any market for that material and to the potential damages the class of authors suffered, a federal magistrate judge in California said in consolidated litigation involving MosaicML Inc. and Databricks Inc.
August 08, 2025
Expert Withdrawn After AI Use Causes ‘Litany’ of Errors in False Claims Suit

SALT LAKE CITY — A federal judge in Utah in an Aug. 7 docket-only order denied as moot a motion to exclude expert testimony after the plaintiff withdrew the expert report following disclosures that the expert’s use of artificial intelligence had led to fabricated quotations, citations and regulatory references.
August 08, 2025
Pro Se Plaintiffs’ Failure To Comply With AI Certifications Nets Different Results

In a pair of rulings, federal courts in Georgia and North Carolina confronted pro se plaintiffs who failed to include required artificial intelligence certifications with their briefing, with one court striking a plaintiff’s summary judgment motion and issuing an order to show cause involving potentially hallucinated citations and the other finding that AI disclosure acts as a shield for the court, not a sword to strike filings.
August 07, 2025
Woman Claiming OpenAI Abandoned Safety Efforts Says Congress Left AI To States

HONOLULU — With the passage of the One Big Beautiful Bill Act, Congress rejected thoughts of federal preemption and left it to the states to regulate artificial intelligence, a woman says in a supplemental brief admitted by a federal judge in Hawaii in a design defect and product liability suit alleging that OpenAI Inc. abandoned its commitment to safety.
August 06, 2025
AI Creator, Others Secure Summary Judgment In Political Speech Law Challenge

SACRAMENTO, Calif. — In a text-only docket order issued Aug. 5 after a hearing, a federal judge in California granted summary judgment to plaintiffs led by a man who uses artificial intelligence to create mocking political images on one of two challenges to laws designed to limit distribution of deceptive political content, leaving a challenge to the second law for a later time.
August 05, 2025
Judge Disqualifies Attorneys For AI Errors In Briefs

BIRMINGHAM, Ala. — Three attorneys who filed documents with artificial intelligence-generated errors must notify clients and courts where they practice of the issue and are disqualified from further participation in a prisoner’s case alleging civil rights abuses, a federal judge in Alabama said while concluding that sanctions by previous courts did not do enough to prevent the “egregious” conduct in this case.
August 05, 2025
Chatbots Are ‘Word Guessers,’ Judge Says In Sanctioning Attorneys $1,485

FLINT, Mich. — Plaintiffs’ counsel must compensate defense counsel $1,485 for time spent responding to briefing with artificial intelligence-generated fake quotes, a federal judge in Michigan said in imposing sanctions and explaining that AI chatbots are more like “word guessers” designed to output probabilistic text than AIs featured in science fiction novels.
August 05, 2025
Education Material Provider’s AI Antitrust Suit Fails, Google Says

WASHINGTON, D.C. — An education content provider cannot show reciprocal dealing from its relationship with Google LLC or that the two have any relationship that requires the latter to refer users to the former’s website rather than provide artificial intelligence-generated responses to user queries, the company says in moving to dismiss an antitrust lawsuit filed in a federal court in the District of Columbia.
July 30, 2025
COMMENTARY: AI In Construction Arbitration – A Fast-Evolving Landscape

By Peter Rosher, Alison Eslick and Alice Jones
August 04, 2025
Judge Sanctions Lawyer $85,567.75 For ‘Bad Faith’ After Repeated AI Errors

FORT LAUDERDALE, Fla. — A federal judge in Florida ordered an attorney to compensate opposing parties $85,567.75 in fees and costs for his repeated misuse of artificial intelligence in addition to dismissing the cases after concluding that even if the initial uses of the technology were reasonable, the ongoing errors were not.