Description: In Lexos Media IP LLC v. Overstock.com Inc., a Kansas federal judge sanctioned five lawyers after finding that filings included AI-generated defective legal authority that had not been verified before submission. The lawyers were fined $12,000 combined.
Editor Notes: Timeline notes: The incident ID date is 07/07/2025, based on the filing of the briefs in Lexos Media IP, LLC v. Overstock.com, Inc. that later were found to contain defective legal citations generated through generative AI and not verified before submission. The court denied correction in December 2025 and imposed sanctions on February 2, 2026. The incident ID was created on 07/08/2026. See also: https://fingfx.thomsonreuters.com/gfx/legaldocs/zjpqdbnkdvx/Lexos%20Media%20IP%20LLC%20v.%20Overstock.Com%20Inc.%20Sanctions%20Ruling.pdf.
Entities
View all entitiesAlleged: OpenAI , Large language model developers , Chatbot developers and AI research tool developers developed an AI system deployed by Sandeep Seth , Lawyers , Law firms and SethLaw PLLC, which harmed United States District Court for the District of Kansas , Overstock.com , Judicial integrity and Epistemic integrity.
Incident Stats
Incident ID
1576
Report Count
1
Incident Date
2025-07-07
Editors
Daniel Atherton
Incident Reports
Reports Timeline
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Feb 3 (Reuters) - A Kansas federal judge has fined lawyers representing a patent holding company a combined $12,000 for filing documents with non-existent quotations and case citations that were generated by artificial intelligence, in the …
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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