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An MIT study of 4.5 million federal civil cases found AI-written court filings jumped from 1% in 2023 to 18% in 2026, while self-filed docket activity surged 158% — threatening to overwhelm federal courts with hallucinated citations and fabricated legal quotes.
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.
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.
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.
A federal court ordered an Oregon attorney to pay $109,700 for submitting AI-generated filings with fabricated case citations—the largest penalty yet for AI hallucination errors in a legal document.