Trial Court Decides Case Based On AI-Hallucinated Caselaw. Joe Patrice writing for Above the Law:
[...] it was always only a matter of time before a poor litigant representing themselves fails to know enough to sniff out and flag Beavis v. Butthead and a busy or apathetic judge rubberstamps one side’s proposed order without probing the cites for verification. [...]
It finally happened with a trial judge issuing an order based off fake cases (flagged by Rob Freund). While the appellate court put a stop to the matter, the fact that it got this far should terrify everyone.
It's already listed in the AI Hallucination Cases database (now listing 168 cases, it was 116 when I first wrote about it on 25th May) which lists a $2,500 monetary penalty.