Trackers · Living reference

AI Incident & Failure Tracker

What actually went wrong — documented production AI failures, liability rulings, and court sanctions, each with a primary source. The reference for anyone writing an AI policy who needs precedent, not vibes. Updated as cases land.

Last updated 2026-07-16 · 11 incidents

DateSubjectWhat happenedAI involvedTypeSource
twigg v. bsn sports (m.d. pa.)Pennsylvania plaintiff's attorneyChief Judge Matthew W. Brann fined the attorney $1,500 and suspended him from practicing in the Middle District of Pennsylvania for six months for a Rule 11 violation after filings contained AI-generated hallucinated citations in Twigg v. BSN Sports, Inc., No. 4:23-CV-00067-MWB.Unspecified generative AICourt sanctionLaw.com / The Legal Intelligencerlaw.com
withers v. city of aberdeen (n.d. miss.)Kathleen M. Wilson, Kathryn Y. Williams, Shauncey Hunter Ridgeway, Mark C. McClintonSenior Judge Sharion Aycock disqualified all four attorneys from the case, revoked the two out-of-state lawyers' pro hac vice admissions and barred them from the Northern District of Mississippi for two years, and imposed $8,000 in combined fines ($2,500 Wilson, $3,500 Williams, $1,000 each for local counsel) after both sides filed AI-hallucinated citations in the Withers v. City of Aberdeen fee dispute (No. 24-cv-218).First Drafts and an unnamed AI research toolCourt sanctionBloomberg Lawnews.bloomberglaw.com
ibach v. stewart (ala. sup. ct.)W. Perry Hall (Mobile solo practitioner)Alabama Supreme Court dismissed the appeal as frivolous and ordered Hall to pay $17,200 in attorney's fees and costs, referred him to the Alabama State Bar for discipline, and barred him from filing anything else in the court unless co-signed by another attorney in good standing — after briefs contained fabricated AI-hallucinated citations in the Ibach v. Stewart family-trust dispute (No. SC-2025-0106).Unspecified generative AICourt sanctionBloomberg Lawnews.bloomberglaw.com
Apr 2026Brigandi order (D. Or., Mag. J. Clarke)Roughly $96,000 sanction (≈$110K with related penalties) for AI-fabricated content across three filings — 15 references to nonexistent cases and 8 fabricated quotations — one of the largest single-attorney AI-hallucination penalties in U.S. federal court to date.Generative AI (unspecified)Court sanctionABA Journalabajournal.com
Feb 2026US v. Heppner (S.D.N.Y., J. Rakoff)Court held that materials a party generated with a consumer-grade AI tool were NOT privileged — inputting client confidences into a public LLM with no confidentiality obligation is a third-party disclosure that waives attorney-client privilege.Consumer/public LLMsLiability rulingMorgan Lewismorganlewis.com
Feb 2026Warner v. Gilbarco (E.D. Mich.)Court held AI-assisted work product WAS protected and not discoverable — "generative AI programs are tools, not persons" — when used at counsel’s direction.Generative AI (general)Liability rulingJD Supra / Morgan Lewisjdsupra.com
Oct 2025California attorney (Mostafavi)Fined $10,000 — the largest California AI-fabrication penalty to date — after 21 of 23 case quotes in an appellate brief turned out to be fabricated by ChatGPT.OpenAI — ChatGPTCourt sanctionThe Daily Recordthedailyrecord.com
May 2025Butler Snow (N.D. Ala., J. Manasco)Show-cause order after a partner used ChatGPT for fake citations; the 300+-lawyer firm called the lapse "inexcusable" and three lawyers were removed from the case.OpenAI — ChatGPTCourt sanctionABA Journalabajournal.com
Feb 2025Morgan & Morgan attorneys (D. Wyo., J. Rankin)$5,000 sanction for 8 fabricated citations; lead lawyer removed from the case after using the firm’s in-house tool MX2.law without verifying the cases.MX2.law (in-house)Court sanctionLawNextlawnext.com
Feb 2024Air CanadaHeld liable for negligent misrepresentation by its support chatbot (Moffatt v. Air Canada); the tribunal rejected the airline’s claim that the chatbot was a "separate legal entity".In-house support chatbotLiability rulingAmerican Bar Associationamericanbar.org
Jun 2023Mata v. Avianca (two NY attorneys)The landmark case: lawyers sanctioned after submitting a brief full of non-existent cases hallucinated by ChatGPT — the first widely-cited AI legal-citation failure.OpenAI — ChatGPTCourt sanctionSeyfarth Shawseyfarth.com

How this is compiled

  • Documented incidents only. Each row cites court/tribunal coverage, law-firm analysis, or Tier-1 reporting — not rumor or speculation.
  • Practitioner focus. We track the failures that set precedent for enterprise AI policy: who was held liable, who was sanctioned, and why.
  • Know an incident we’re missing? Tell us.

Informational only · not legal advice