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Two US lawyers just got fined for using ChatGPT to generate fake court cases

Some people think AI knows all, it doesn't, and some professions should be very careful how they use it. This also sets a dangerous precedent as more professionals lean on AI to do their heavy lifting.

Key takeaways

  • In what seems like a world first a US judge has fined two lawyers and a law firm $5,000 (£3,935) after fake citations that were generated by ChatGPT were submitted in a court filing.
  • A district judge in Manhattan ordered Steven Schwartz, Peter LoDuca, and their law firm Levidow & Oberman to pay the fine after fictitious legal research was used in an aviation injury claim.
  • Schwartz had admitted that ChatGPT, a chatbot that churns out plausible text responses to human prompts, invented six cases he referred to in a legal brief in a case against the Colombian airline Avianca.
Cite or link to this article

Griffin, M. (2023) 'Two US lawyers just got fined for using ChatGPT to generate fake court cases', 311 Institute, 1 July. Available at: https://www.311institute.com/two-us-lawyers-just-got-fined-for-using-chatgpt-to-generate-fake-court-cases/ (Accessed: 1 October 2026).

In what seems like a world first a US judge has fined two lawyers and a law firm $5,000 (£3,935) after fake citations that were generated by ChatGPT were submitted in a court filing. A district judge in Manhattan ordered Steven Schwartz, Peter LoDuca, and their law firm Levidow & Oberman to pay the fine after fictitious legal research was used in an aviation injury claim.

Schwartz had admitted that ChatGPT, a chatbot that churns out plausible text responses to human prompts, invented six cases he referred to in a legal brief in a case against the Colombian airline Avianca.

The judge P Kevin Castel said in a written opinion there was nothing “inherently improper” about using Artificial Intelligence (AI) for assisting in legal work, but lawyers had to ensure their filings were accurate.

“Technological advances are commonplace and there is nothing inherently improper about using a reliable artificial intelligence tool for assistance,” Castel wrote. “But existing rules impose a gatekeeping role on attorneys to ensure the accuracy of their filings.”

The judge said the lawyers and their firm “abandoned their responsibilities when they submitted non-existent judicial opinions with fake quotes and citations created by the tool, then continued to stand by the fake opinions after judicial orders called their existence into question.”

Levidow, Levidow & Oberman said in a statement on Thursday that its lawyers “respectfully” disagreed with the court that they had acted in bad faith.

“We made a good-faith mistake in failing to believe that a piece of technology could be making up cases out of whole cloth,” it said.

Lawyers for Schwartz told Reuters he declined to comment. LoDuca did not immediately reply to a request from Reuters for comment, and his lawyer said they were reviewing the decision.

ChatGPT had suggested several cases involving aviation mishaps that Schwartz had not been able to find through usual methods used at his law firm. Several of those cases were not real, misidentified judges or involved airlines that did not exist.

Chatbots such as ChatGPT, developed by the US firm OpenAI, can be prone to “hallucinations” or inaccuracies. In one example ChatGPT falsely accused an American law professor of sexual harassment and cited a non-existent Washington Post report in the process. In February a promotional video for Google’s rival to ChatGPT, Bard, gave an inaccurate answer to a query about the James Webb space telescope, raising concerns that the search company had been too hasty in launching a riposte to OpenAI’s breakthrough.

Chatbots are trained on a vast trove of data taken from the internet, although the sources are not available in many cases. Operating like a predictive text tool, they build a model to predict the likeliest word or sentence to come after a user’s prompt. This means factual errors are not only possible but very common, but the human-seeming response can sometimes convince users that the answer is correct.

The judge said one of the fake decisions generated by the chatbot had “some traits that are superficially consistent with actual judicial decisions” but that other portions contained “gibberish” and were “non-sensical”.

In a separate written opinion, the judge threw out the underlying aviation claim, saying the statute of limitations had expired.

FAQ

Why does this matter?

Some people think AI knows all, it doesn't, and some professions should be very careful how they use it. This also sets a dangerous precedent as more professionals lean on AI to do their heavy lifting.

Matthew Griffin

About the author

Matthew Griffin Founder, 311 Institute

Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."

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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.

An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.

As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.

Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.

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Source: first published by the 311 Institute on 1 July 2023. Cite as: Griffin, M. (2023). Two US lawyers just got fined for using ChatGPT to generate fake court cases. 311 Institute. https://www.311institute.com/two-us-lawyers-just-got-fined-for-using-chatgpt-to-generate-fake-court-cases/

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