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$5,000 fine

Morgan & Morgan lawyers fined for cases their AI tool invented

On January 22, 2025, lawyers suing Walmart in a Wyoming federal court filed motions citing nine cases. Eight did not exist. The drafting lawyer had uploaded the motion to MX2.law, Morgan & Morgan's in-house AI platform, and asked it to add case law. The judge ordered the lawyers to explain, and they withdrew the motions the next day. They then admitted an AI platform had invented the cases. On February 24, 2025, the court fined the drafting lawyer $3,000 and removed them from the case. Two other lawyers who signed the motions were fined $1,000 each. The firm itself was not sanctioned. It now requires users to confirm they will verify AI output independently.

Sources: U.S. District Court, D. Wyoming (via CourtListener): Wadsworth v. Walmart Inc., Order on Sanctions and Other Disciplinary Action, ECF 181, ABA Journal: No. 42 law firm by head count sanctioned over fake case citations generated by AI