A federal judge in Oregon just issued a $110,000 sanction to Brigandy and Murphy. The largest AI hallucination penalty in U.S. history before dismissing a $12M winery lawsuit with prejudice.
Across three briefs, the filings contained 15 non-existent cases and 8 completely fabricated judicial quotations.
The primary out-of-state attorney relied entirely on unverified AI-generated text to draft the core arguments.
Meanwhile, local counsel signed off on the filings, assuming his role was purely procedural.
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