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Sullivan & Cromwell Reportedly Filed Emergency Bankruptcy Motion Containing AI-Generated Legal Errors

Occurred
Apr 9, 2026
Published
Apr 21, 2026
Source
AI Incident Database

Summary

Sullivan & Cromwell reportedly filed an emergency motion in the Chapter 15 bankruptcy case of Prince Global Holdings that contained numerous citation and legal inaccuracies. The firm later acknowledged that some errors were AI hallucinations and that its AI-use and citation-review policies had not been followed. After opposing counsel identified the problems, the firm reportedly undertook a formal remedial response.

Developers

  • Generative AI developers

Deployers

  • Sullivan & Cromwell LLP
  • Andrew G. Dietderich
  • Law firms
  • Lawyers

Harmed parties

  • United States Bankruptcy Court for the Southern District of New York
  • Boies Schiller Flexner LLP
  • Clients of lawyers
  • Insolvency practitioners
  • Court-appointed liquidators
  • Parties in In re Prince Global Holdings Limited

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: AI hallucinations in legal filings constitute a notable failure with professional consequences but no mass harm.

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

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