Incident Tracker / United States (federal)
In re Rosslyn2016, LLC, No. 25-34507 (Bankr. S.D. Tex.)
·US Bankruptcy Court for the Southern District of Texas, Houston Division·US-FEDSanctions
The US Bankruptcy Court for the Southern District of Texas held petitioning creditors' counsel in civil contempt and found a Rule 9011 violation after four motions to quash contained AI-hallucinated quotations and miscited authorities. Counsel and the creditors must jointly pay the Chapter 7 trustee USD 29,877 in fees, and counsel must complete six hours of generative-AI CLE.
- Court
- US Bankruptcy Court for the Southern District of Texas, Houston Division
- Date
- 2026-07-14
- Who used the AI
- Lawyer
- AI tool
- Westlaw AI tools (per counsel, who denied using ChatGPT)
- Conduct
- Counsel for petitioning creditors in an involuntary bankruptcy (surname Mitchell; full name not captured) filed four motions to quash containing fabricated direct quotations and nonexistent or misused authorities, including a quotation misattributed to In re Dinnubilo and a citation to the wrong case, then defied a production order.
- Outcome
- Sanctions
- Penalty
- US$29,877
- Regulatory outcome
- No separate regulatory disposition recorded
- Status
- Verified against listed sources
- Last checked
- 2026-09-03
Primary sources for this incident
Related regulation records for this incident
No related regulation record has been linked to this incident yet.
Cite this record
SafeLegalAI Global Legal AI Incident Tracker, “In re Rosslyn2016, LLC, No. 25-34507 (Bankr. S.D. Tex.)”, safelegalai.com/tracker/in-re-rosslyn2016 (accessed 2026-09-04). Data: CC BY 4.0.