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AI Hallucinations Are Exploding In U.S. Courts, New Study Finds
A new analysis from Laine AI suggests that AI-related errors in U.S. court filings are no longer isolated incidents but a rapidly expanding trend. Drawing on hundreds of confirmed cases, the study finds that courts are seeing a growing number of filings containing fabricated citations, inaccurate legal authorities, and other AI-generated mistakes as lawyers and self-represented litigants increasingly incorporate generative AI into their work.
The increase has been dramatic. According to the report, documented AI-related filing errors climbed from just 25 cases in early 2025 to 249 by the fourth quarter of that year, with the pace continuing into 2026. First-quarter 2026 data nearly matched the entire final quarter of 2025 despite covering only part of the year, underscoring how quickly the problem is accelerating.
Geographically, a relatively small number of states account for a disproportionate share of the incidents. California leads the nation with 97 recorded cases, followed by New York, Texas, Florida, and Illinois. Together, those five states represent roughly 40% of all documented AI-related legal filing errors, suggesting that jurisdictions with higher AI adoption are also experiencing more frequent courtroom mistakes.
The study also identifies several fast-growing hotspots. Florida experienced one of the sharpest increases, jumping from just one recorded incident in 2024 to 28 during 2025. Meanwhile, states including Washington, Pennsylvania, New Jersey, Nevada, Indiana, Oregon, Oklahoma, Minnesota, Mississippi, and Illinois all began reporting meaningful numbers of AI-related filing errors after previously recording none, indicating that the issue is spreading well beyond a handful of early adopters.
Courts have responded with a wide range of sanctions. California has imposed more than $256,000 in monetary penalties tied to AI-related filing errors, accounting for roughly one-third of all fines identified in the study. However, the likelihood of receiving severe sanctions varies considerably by jurisdiction. Louisiana, Wyoming, New Mexico, and Georgia imposed serious penalties in a much larger percentage of cases than states with higher overall incident counts, highlighting significant differences in judicial approaches.
Perhaps the study's most notable finding is that most AI-related filing mistakes do not originate with attorneys. More than 60% of the documented incidents involved pro se litigants representing themselves, while lawyers accounted for roughly 37% of the cases. The authors suggest that individuals without formal legal training may be relying more heavily on AI tools without adequate review, increasing the likelihood of errors reaching the courtroom.
When AI tools were identified, ChatGPT was the most frequently named platform, though the overwhelming majority of filings either failed to specify which AI system had been used or only implied AI assistance. ChatGPT appeared in 48 documented cases, while tools such as Microsoft Copilot, Claude, Google Gemini, Perplexity, Lexis AI, and Westlaw's AI products were mentioned only occasionally. Because nearly 90% of filings did not clearly identify the software involved, the report notes that assigning responsibility to any particular platform remains difficult.
The most common errors involved outright fabrication. More than half of all recorded AI-related mistakes consisted of nonexistent cases, citations, or legal authorities presented as genuine. Misrepresenting actual legal precedent accounted for another quarter of incidents, while fabricated quotations from real cases represented roughly one-fifth. California, New York, and Texas consistently ranked among the states with the highest numbers across each category.
The report also found that over 80% of AI-related hallucinations occurred in case-law citations rather than statutes, regulations, or supporting exhibits. Because legal arguments often depend on accurately citing precedent, fabricated or inaccurate case law can undermine the credibility of an entire filing and expose litigants to sanctions. The authors conclude that AI can remain a valuable legal research tool, but only if every citation, quotation, and legal authority is independently verified before being submitted to a court.
Tyler Durden Tue, 06/30/2026 - 22:10Karamo Brown seemingly confirms Jussie Smollett romance after PDA-filled outing in LA
Karamo Brown seemingly confirms Jussie Smollett romance after PDA-filled outing in LA
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RFK Jr. Announces He's Ending Emergency Liability Protection For COVID-19 Vaccine Makers
Authored by Zachary Stieber via The Epoch Times,
Health Secretary Robert F. Kennedy Jr. is ending emergency declarations for COVID-19 vaccines, treatments, and medical devices, after determining that the circumstances that resulted in the declarations are no longer in place.
The health secretary in office in early 2020 issued emergency declarations, providing liability protections for companies that made products for COVID-19 and enabling regulators to issue emergency authorizations, which have a lower evidentiary threshold than regular approval.
The declarations were extended multiple times, most recently in 2024 by then-Health Secretary Xavier Becerra through the end of 2029.
They provided broad immunity to manufacturers of the products, as well as people who administered them to others.
Becerra said in the latest extension that while the COVID-19 public health emergency expired in May 2023, COVID-19 “continues to present a credible risk of a future public health emergency” and that keeping the protections in place was necessary to keep the United States prepared for that threat.
Kennedy disagreed, writing in a notice of termination that “circumstances no longer exist to justify emergency use of drugs and biological products during the COVID-19 pandemic.”
He cited how regulators in 2025 revoked emergency authorization for COVID-19 vaccines, transitioning to typical approval for all the shots across all available ages.
“Americans deserve a regulatory system that is transparent, accountable, and rooted in the rule of law,” Kennedy said in a statement.
“By ending these COVID-19 emergency use authorization declarations, we’re reinforcing public confidence that emergency authorities are temporary and targeted.”
To terminate emergency declarations, a health secretary has to provide advance notice that would give a reasonable amount of time to companies to withdraw the products that have been generated under the declarations.
The Food and Drug Administration determined that 12 months is a sufficient period of time, according to health officials. The declarations for vaccines and drugs will thus terminate effective June 29, 2027.
The declarations for medical devices such as COVID-19 tests will only stay in place for 180 days, or until Dec. 26, 2026.
The FDA has been working with manufacturers of all products still under emergency authorization about seeking approval for continued use, and it is reasonable to conclude that manufacturers will be able to generate data that would support fresh filings to regulators, the notice stated.
Officials plan to notify Congress of the development, the Department of Health and Human Services said.
Tyler Durden Tue, 06/30/2026 - 21:45US Lifts Restrictions On Anthropic's Fable, Mythos AI Models
The US government removed foreign access restrictions on Anthropic’s Fable and Mythos AI models, clearing it for wider distribution after the AI company resolved the Trump administration’s safety controls, less than three weeks after the company was ordered to suspend access to its most advanced AI models over national security risks.
On June 12, the Commerce Department imposed an export control rule via a private letter requiring the company to obtain US permission before allowing any foreign national, regardless of location, to access those two models and before it could be sent to any destination worldwide. In response, the AI company disabled its powerful Mythos 5 AI model and Fable 5, a similar model intended for wider release.
Then after several days of discussions between Anthropic and the Trump admin, late on Tuesday, Anthropic said in a post on X that it had received notice that Commerce was lifting the curbs on access to both models. Some of the restrictions on Mythos had been eased on June 26.
We’ve received notice that the Department of Commerce has lifted export controls on Claude Fable 5 and Mythos 5.
We'll begin restoring access tomorrow, and will share an update soon.
We’re grateful to our users for their patience, and to everyone who worked with us on…
“We’re grateful to our users for their patience, and to everyone who worked with us on redeploying the models,” the company said in its post.
The key to reversing the export controls was assuaging White House officials’ concerns about limiting the ability of bad actors to circumvent the models’ guardrails.
Anthropic said it would restore access to users beginning Wednesday.
In a letter to Anthropic viewed by Bloomberg, Commerce Secretary Howard Lutnick said Anthropic had pledged to “proactively deter and address security risks associated with the models.” On Tuesday evening, Lutnick tweeted that "over the past two weeks, we have worked closely with Anthropic to analyze and approve Fable 5 to ensure alignment across the US Government and strengthen America’s leadership in AI."
Over the past two weeks, we have worked closely with Anthropic to analyze and approve Fable 5 to ensure alignment across the US Government and strengthen America’s leadership in AI. https://t.co/PtVJWyQ9kH
— Howard Lutnick (@howardlutnick) June 30, 2026The department’s export control directive marked the most significant intervention by the US government to date into an AI venture’s operations and sparked legal questions over whether export controls can be used to regulate AI model access. The consequences may still have last impact, as they spotlighted governance risks for Anthropic just as the company is charting its initial public offering.
As AI influencer Alex Finn pointed out, the crackdown on both Chinese models and frontier US models will likely prompt more consumers to roll out their own local models.
Everyone on planet Earth is talking about local AI right now
And for good reason
Governments are banning models. Hardware prices are 10xing
You NEED to be getting into local AI. The number 1 questions everyone has though is which computer to buy?
Here's your answer:
You… pic.twitter.com/w3pl6RTg6K
As Bloomberg notes, the move to relax the restrictions also relieves tension that was weighing on Anthropic’s already-tenuous relationship with the Trump administration. The company is suing the Pentagon after Secretary Pete Hegseth moved in March to designate it a supply-chain risk following a messy and unsuccessful contract renegotiation process.
Tyler Durden Tue, 06/30/2026 - 21:26LeBron James seen hanging poolside in first post as free agent
xAI Rolls Out Data Center Dividend For Residents Around Memphis Colossus
xAI Memphis, Elon Musk's supercomputing and data center complex in the Memphis metro area - better known as Colossus - appears to be testing a version of the "data center dividend" for residents in the surrounding community.
The offer of Starlink service with no upfront hardware costs and a substantial monthly discount appears to be an attempt by xAI to turn local goodwill into political insulation, as AI data centers face growing scrutiny over soaring power demand, grid strain, and other neighborhood-level impacts.
"As SpaceX continues to invest in the area, SpaceX is offering our neighbors in the Memphis area no upfront hardware costs on Residential @Starlink kits for new customers and a discount on home internet service plans for both new and existing customers," Starlink wrote on X.
Starlink wrote on its website, "The discount is half the standard monthly price and is applied automatically."
Earlier this year, @SpaceX acquired @xAI (now SpaceXAI), which operates the Colossus datacenters in Memphis.
As SpaceX continues to invest in the area, SpaceX is offering our neighbors in the Memphis area no upfront hardware costs on Residential @Starlink kits for new customers… pic.twitter.com/BfnOHHPLOx
xAI describes Colossus as its AI training supercomputer, built in Memphis and pitched by Musk as one of the world's most powerful AI superclusters.
The project has become a major flashpoint because of its massive electricity demand. xAI has expanded from Colossus 1 in Memphis to Colossus 2 in Southaven, Mississippi, just across the state line, and has used natural gas turbines to supply power.
Left-wing environmental NGOs and the NAACP have sued xAI and its subsidiary, MZX Tech, alleging that some natural gas turbines were operated without proper air permits and could worsen pollution in nearby communities.
xAI's data center dividend to the local community around Colossus may only suggest that other forms of dividends offered to local communities could one day include monthly utility bill credits, grid upgrades, and infrastructure improvements.
Perhaps other data center operators should take note of what xAI is doing, given that half of U.S. data centers scheduled for construction this year could be canceled or delayed as local resistance mounts.
Tyler Durden Tue, 06/30/2026 - 21:20