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$31,000 Sanction in Lacey v. State Farm Tied to Purportedly Undisclosed Use of LLMs and Erroneous Citations

AI Incident Database · article · May 13, 2025 · UTC

In the case of Lacey v. State Farm, two law firms were sanctioned $31,000 after submitting a legal brief containing reportedly erroneous citations generated using AI tools. The court reportedly found that the lawyers failed to disclose the use of AI, neglected to verify its output, and refiled a revised brief with additional inaccuracies. Judge Michael Wilner deemed the conduct reckless and issued sanctions for what he described as "improper" and "misleading" legal filings.

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recordType
incident-report
evidenceStatus
reported
region
Global

Reported occurrence date: 2025-04-15T00:00:00.000Z

Evidence & attribution

AI Incident Database, Responsible AI Collaborative; McGregor (2021), Preventing Repeated Real World AI Failures by Cataloging Incidents. Incident-specific contributor credits are available at each citation link. Metadata adapted; article text excluded.

License: CC BY-SA 4.0

First collected: 2026-09-19T22:50:59.123Z. This is not the publication date.

Observed changes

AIIC observation times, not verified publisher revision times. Up to eight recent revisions.

2026-09-20T23:22:28.549Z

  • publishedAt: Not provided2025-05-13T00:00:00.000Z