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New York court sanctions lawyer for AI-fabricated case law

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Jan 2026

A New York appellate court imposed $10,000 in sanctions after a lawyer submitted briefings in a mortgage foreclosure case containing fabricated case citations identified as likely AI-generated hallucinations. The court found multiple nonexistent cases and misrepresented holdings, affirming prior orders and awarding costs to the plaintiff.

Incident Details

Perpetrator:Legal Counsel
Severity:Facepalm
Blast Radius:$10,000 in sanctions ($5,000 counsel, $2,500 defendant, plus costs); appellate rebuke; case law now cited as precedent for AI citation misconduct.