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Courts on AI / Fabricated or misquoted citations

Kadlaskar v. United States Citizenship and Immigration Services

United States District Court for the District of Nebraska · Federal district courts · NE · · 2026 WL 2267773 · No. 4:25CV3025 · order

The District of Nebraska grants an EAJA fee request and cautions plaintiff’s counsel over a cited Peterson decision. The order says the Eighth Circuit citation does not exist, a similarly named case lacks the quoted language, and Nebraska’s AI rule requires verification.

Disposition
The court awarded EAJA fees and cautioned plaintiff's counsel about a hallucinated Eighth Circuit citation.
Recorded conduct
Plaintiff’s counsel cited a nonexistent Eighth Circuit Peterson decision and quoted language that appeared elsewhere in a legislative-history footnote. — outcome: warning; actor: lawyer
Canonical record
Incident tracker entry — verified outcome, regulator disposition and related rules

What the court wrote

Verbatim from the court's document (public domain). Ellipses mark omitted text; nothing is paraphrased.

Plaintiff cites one case in her initial brief in support of the Motion for Attorney Fees. Filing No. 27-1 at 2. Plaintiff quotes Peterson v. U.S. Retirement Board, 785 F.2d 245 (8th Cir. 1986) as follows: Agency action found to be arbitrary and capricious or unsupported by substantial evidence is virtually certain not to have been substantially justified under the Act. Only the most extraordinary special circumstances could permit such an action to be found to be substantially justified under the Act. ... However, that case does not exist. The Court found a portion of this particular quotation in a footnote in Jackson v. Bowen, 807 F.2d 127, n. 5 (8th Cir. 1986) that Plaintiff incorrectly cites in her reply brief. ... While this apparent “hallucinated” case does not necessarily misstate the law, Plaintiff's counsel's reliance on it certainly undermines his credibility with this Court. ... A case of a similar name with a different citation, Peterson v. U.S. Railroad Retirement Board, 780 F.2d 1361 (8th Cir. 1985), does not contain the quoted language. 785 F.2d 245 does not exist. Counsel is cautioned that under the ABA Canons of Professional Ethics he has a duty of candor to the Court to not knowingly make false statements of fact or law to the Court and to correct any such false statement. In addition, counsel has an obligation under Fed. R. Civ. P. 11(b)(2) that the legal authority cited in his filings are based on “an inquiry reasonable the circumstances.” Finally, NECivR 7.1(d)(2) specifically admonishes that “parties are required, if using generative artificial intelligence programs, to verify the contents of their filings. Any filing not properly verified may be stricken and/or sanctions may be imposed on the filing party.”

Authorities cited in the passage: Peterson v. U.S. Retirement Board, 785 F.2d 245 (8th Cir. 1986) · Jackson v. Bowen, 807 F.2d 127 (8th Cir. 1986) · Peterson v. U.S. Railroad Retirement Board, 780 F.2d 1361 (8th Cir. 1985) · Fed. R. Civ. P. 11 · NECivR 7.1(d)(2)

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