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Courts on AI / Fabricated or misquoted citations

In re Prince Global Holdings Limited, et al.

United States Bankruptcy Court for the Southern District of New York · Federal bankruptcy courts · NY · · No. 26-10769 Dear Chief · order

Fabricated or misquoted citations

The Bankruptcy Court for the Southern District of New York on 2026-04-18 received the firm’s corrective letter identifying AI hallucinations, accepted corrected citations, and noted the apology in In re Prince Global Holdings Limited, et al. Counsel filed a motion with two fabricated case citations, one false case quotation, and one mischaracterized case citation.

Disposition
The bankruptcy court received the firm’s corrective letter identifying AI hallucinations, accepted corrected citations, and noted the apology.
Recorded conduct
The firm filed a bankruptcy motion with AI-hallucinated case citations, a misquoted authority, and a garbled citation, then corrected the errors by letter. — outcome: other; 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.

I became aware Thursday evening that the JPLs’ Emergency Motion for Entry of Orders Granting (I) Ex Parte Relief and (II) Provisional Relief, Pursuant to Section 1519 of the Bankruptcy Code filed with the Court on April 9, 2026 (the “Motion”) [D. I. 9] includes inaccurate citations and other errors, each of which is identified and corrected in Schedule A to this letter. The inaccuracies and errors in the Motion include artificial intelligence (“AI”) “hallucinations. ” “Hallucinations” are instances in which artificial intelligence tools fabricate case citations, misquote authorities, or generate non-existent legal sources. We deeply regret that this has occurred. The Firm maintains comprehensive policies and training requirements governing the use of AI tools in legal work. These safeguards are designed to prevent exactly this situation.

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