Articles
Crypto Market Analysis

US law firm apologizes after AI hallucinations made it to legal filing

User Image

بواسطة مجهول

تم الإنشاء April 22, 2026|2 دقائق للقراءة
Main Image

Sullivan & Cromwell’s Andrew Dietderich said the company has AI policies to prevent incorrect citations and other errors, but procedures weren’t followed on this occasion.

Wall Street law firm Sullivan & Cromwell has apologized to a federal judge after submitting a court filing that contained around 40 incorrect citations and other errors caused by AI hallucinations.

“We deeply regret that this has occurred,” Andrew Dietderich, co-head of Sullivan & Cromwell’s global restructuring team, wrote Friday in a letter to Chief Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York.

“The Firm and I are keenly aware of our responsibility to ensure the accuracy of all submissions including under Local Bankruptcy Rule 9011-1(d), and I take responsibility for the failure to do so,” he said of an emergency motion filed nine days earlier.

The incident highlights the risk AI tools can pose in high-stakes professional work without proper oversight. A database managed by legal technologist Damien Charlotin has recorded 1,334 incidents of AI hallucinations in court filings around the world, including more than 900 in the US.

Charlotin pointed out that most of these hallucinations involve fabricated citations, though AI-generated legal arguments have also occasionally been identified.

Dietderich said Sullivan & Cromwell has policies in place for the use of AI tools, which include a review of the citations it uses, but said the policies weren’t followed.

Sullivan & Cromwell is one of the largest law firms in the US by revenue, ranking 30th on the AmLaw Global 200. The firm also represented crypto exchange FTX in its bankruptcy case.

Dietderich said the law firm took “immediate remedial measures,” including a full review of the circumstances that led to the errors. 

Related: Coinbase’s AI payments protocol x402 launches app store for AI agents

The firm is also “evaluating whether further enhancements to its internal training and review processes are warranted,” Dietderich said.

Dietderich also noted that the errors were spotted by a rival law firm.

“I also called Boies Schiller Flexner LLP on Friday to thank them for bringing this matter to our attention and to apologize directly to them as well,” he said. 

Magazine: IronClaw rivals OpenClaw, Olas launches bots for Polymarket — AI Eye

Source: CoinTelegraph


مقالات أخرى نشرت مؤخرا

EUR trading accounts for 1% of Binance spot volume, CryptoQuant says
EUR trading accounts for 1% of Binance spot volume, CryptoQuant says

Trading Strategies

Euro-denominated trading accounts for around 1% of Binance's spot volume, according to CryptoQuant d...

Strategy adds $300M to USD Reserve, acquires 520 BTC
Strategy adds $300M to USD Reserve, acquires 520 BTC

Bitcoin

Michael Saylor’s Strategy boosted its USD Reserve to $1.4 billion and added 520 Bitcoin, funded th...

Social trading platform Fomo raises $75M, reaches $550M valuation
Social trading platform Fomo raises $75M, reaches $550M valuation

Trading Strategies

The Series B round values the social trading and token discovery platform at $550 million as crypto ...

Enso launches RWA app and trading for over 500 tokenized assets
Enso launches RWA app and trading for over 500 tokenized assets

Trading Strategies

Enso launched access to over 500 tokenized assets and US stocks, citing a growing demand for US equi...

Why Google search can be a crypto wallet risk
Why Google search can be a crypto wallet risk

Crypto Market Analysis

Think your wallet is safe? A major crypto risk may start with a Google search and one wrong click.So...

Bitcoin price taps $65.5K as Iran deal sees oil drop toward 16-week low
Bitcoin price taps $65.5K as Iran deal sees oil drop toward 16-week low

Bitcoin

Bitcoin sought a breakout toward a potential BTC price target near $70,000 as Iran news sent oil tow...