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Plaintiffs' Lawyers Admit AI Generated Erroneous Case Citations in Federal Court Filing Against Walmart

Occurred
Feb 6, 2025
Published
Feb 25, 2025
Source
AI Incident Database

Summary

Lawyers Rudwin Ayala, T. Michael Morgan (Morgan & Morgan), and Taly Goody (Goody Law Group) were fined a total of $5,000 after their Wyoming federal lawsuit filing against Walmart cited fake cases "hallucinated" by AI. Judge Kelly Rankin sanctioned them, removing Ayala from the case and noting attorneys must verify AI sources. The filing, flagged by Walmart’s legal team, led to its withdrawal and an internal review.

Developers

  • Large language model developers

Deployers

  • Taly Goody
  • T. Michael Morgan
  • Rudwin Ayala
  • Morgan & Morgan
  • Goody Law Group

Harmed parties

  • Taly Goody
  • T. Michael Morgan
  • Rudwin Ayala
  • Plaintiffs in Wyoming Walmart Hoverboard Lawsuit
  • Legal system
  • Judicial integrity
  • Clients of Morgan & Morgan
  • Clients of Goody Law Group

Tags

  • Hallucination
  • Large language model error
  • Legal case
  • Fake case citations
  • Judicial sanctions

Classification

Category confidence: 95%
Severity confidence: 90%

Rationale: AI hallucinations caused erroneous legal citations, resulting in court sanctions and fines.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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