Legal & Compliance News

Legal & Compliance

OpenAI Moves to Dismiss Federal Lawsuit Alleging ChatGPT Acted as an Unlicensed Attorney

OpenAI filed to dismiss a federal lawsuit by Nippon Life alleging ChatGPT acted as an unlicensed attorney — the first major judicial test of AI developer liability for downstream professional legal use.

Hector Herrera · May 20, 2026 · 3 min read

Legal & Compliance

AI Chatbots Face Escalating Legal Scrutiny as Court Sanctions Top 1,200 Cases

More than 1,200 court cases globally now involve AI-related sanctions — and a wave of state disclosure laws is following suit.

Hector Herrera · May 19, 2026 · 4 min read

Legal & Compliance

Three AI Risk Shifts Every General Counsel Must Own in 2026

State AI statutes are enforcing now, vendor contracts have liability gaps most legal teams haven't addressed, and GCs who don't lead on AI governance will lose it to IT. All three are arriving at once.

Hector Herrera · May 18, 2026 · 5 min read

Legal & Compliance

Oregon's Top Court Warns AI-Generated Erroneous Filings Are 'Rapidly Escalating'

Oregon's Court of Appeals chief judge issued a public warning that AI-fabricated court filings are "rapidly escalating," with one attorney fined $10,000 and another $8,000 for AI-hallucinated citations.

Hector Herrera · May 16, 2026 · 3 min read

Legal & Compliance

Anthropic Enters AI Legal Services Market as Harvey, EvenUp, and Legora Compete for Billion-Dollar Share

Anthropic is moving directly into AI legal services, joining Harvey, EvenUp, and Legora as courts accelerate sanctions for AI hallucinations in legal filings.

Hector Herrera · May 15, 2026 · 4 min read

Legal & Compliance

AI Is Running Credit Decisions at Scale — The Governance Framework Hasn't Caught Up

Machine learning drives loan approvals worldwide, but legal accountability frameworks built for human underwriters haven't been updated for algorithms operating at scale.

Hector Herrera · May 14, 2026 · 3 min read

Legal & Compliance

Three-State AI Compliance Collision: Colorado, Connecticut, California Face Summer Deadlines

Colorado's AI Act takes effect June 30, Connecticut's SB 5 heads to the governor, and California pursues updated legislation — all with overlapping, incompatible requirements and no federal preemption in sight.

Hector Herrera · May 13, 2026 · 4 min read

Legal & Compliance

Connecticut AI Safety Bill Passes Both Chambers, Covering Chatbots, Hiring Decisions, and Deepfakes

Connecticut's SB5 cleared both legislative chambers on May 1, 2026, establishing AI obligations around companion chatbots, automated hiring, and synthetic content — making it one of the most comprehensive state AI laws in the country.

Hector Herrera · May 11, 2026 · 4 min read

Legal & Compliance

Federal Judge Rules Senior Partners Are Personally Liable for AI Errors in Filings by Their Teams

A U.S. federal judge ruled that supervising partners are personally liable for AI-generated errors in court filings by their teams — extending sanctions exposure up the law firm hierarchy for the first time.

Hector Herrera · May 8, 2026 · 3 min read

Legal & Compliance

AI Chatbots Face Escalating Legal Exposure Over Liability, Privilege Waiver, and Consumer Harm

FTC inquiries, state AG investigations, and diverging state laws are creating compounding liability exposure for companies deploying AI chatbots — and the rules are being written in real time.

Hector Herrera · May 7, 2026 · 5 min read

Legal & Compliance

Legal AI Startup Legora Hits $5.6 Billion Valuation as Harvey Rivalry Escalates

Legal AI platform Legora has reached a $5.6 billion valuation in its latest funding round, intensifying its rivalry with Harvey AI as institutional law firms commit serious capital to AI-assisted legal work.

Hector Herrera · May 6, 2026 · 3 min read

Legal & Compliance

AI Hallucination Cases in Court Filings Now Arriving at 4 to 5 Per Day

AI hallucination incidents in legal filings are now documented at four to five new cases per day — and courts are considering mandating hyperlinked citations to catch fabricated sources at time of filing.

Hector Herrera · May 5, 2026 · 5 min read

Legal & Compliance

Who Is Liable When an AI Agent Signs a Bad Contract? Courts Begin Confronting Agentic AI Law

Businesses are deploying AI agents to negotiate and execute contracts autonomously, but no court has definitively settled who is liable when those agents make damaging deals.

Hector Herrera · May 4, 2026 · 5 min read

Legal & Compliance

OpenAI Trial: Lawyers Say Shivon Zilis Served as Musk's Covert Eyes Inside the Company

OpenAI's lawyers presented a 2018 text showing Shivon Zilis offered to stay close to the company to keep "info flowing" to Musk — and served on OpenAI's nonprofit board for three years afterward.

Hector Herrera · May 3, 2026 · 3 min read

Legal & Compliance

Courts Sanctioning Lawyers for AI-Hallucinated Citations at Four to Five Cases Per Day

Courts are now sanctioning lawyers for AI-generated fake citations at four to five cases per day — a rate that has transformed a slow-building professional risk into an institutional emergency for law firms.

Hector Herrera · May 1, 2026 · 4 min read

Legal & Compliance

AI Is Breaking Contract Law. Courts Are Just Beginning to Figure Out the Rules.

Alston & Bird's April 2026 AI Quarterly finds courts issuing consequential AI rulings without a coherent framework, including a privilege-destroying ruling for law firms using commercial AI tools.

Hector Herrera · Apr 30, 2026 · 4 min read

Legal & Compliance

Musk Retakes Stand on Day 3 of Landmark OpenAI Trial as $130 Billion Lawsuit Intensifies

Elon Musk returned to the witness stand Wednesday in federal court as his $130 billion lawsuit against OpenAI and Sam Altman entered its third day — a case that could force the AI lab to revert to nonprofit status.

Hector Herrera · Apr 30, 2026 · 3 min read

Legal & Compliance

EU AI Act Deadlines Are Slipping — What That Means for Your Compliance Roadmap

EU institutions are actively considering pushing key AI Act compliance deadlines into 2027–2028. Companies that planned around June 2026 now face material uncertainty about final obligations.

Hector Herrera · Apr 29, 2026 · 4 min read

Legal & Compliance

The AI Compliance Crunch Is Here. What Companies Must Act on Before June.

Colorado's AI Act, new state requirements in Illinois, Texas, and California, and an uncertain EU timeline are creating a compliance crunch that legal teams can no longer defer.

Hector Herrera · Apr 28, 2026 · 4 min read

Legal & Compliance

Federal Judge Rules Woman's ChatGPT Chats Are Protected 'Work Product' — A First for AI and Legal Discovery

A federal magistrate judge in Michigan ruled that a litigant's ChatGPT conversations cannot be compelled by opposing counsel — the first ruling to extend work product protection to AI chat logs.

Hector Herrera · Apr 27, 2026 · 4 min read