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Wall Street Elite's AI Blunder: Fabricated Citations Expose Cracks in Legal Tech Reliance

WebProNews·Victoria Mossi·about 1 month ago
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A top Wall Street law firm, Sullivan & Cromwell, filed a court motion packed with errors from artificial intelligence. Opposing lawyers spotted the mistakes right away. Bogus citations. Misquoted statutes. Nonexistent cases. The firm, known for advising giants like OpenAI and representing Donald Trump, had to scramble. On April 9, 2026, Sullivan & Cromwell submitted an emergency motion in the U.S. Bankruptcy Court in Manhattan. The case: In re Prince USA , tied to a Cambodian scam conglomerate’s collapse. Boies Schiller Flexner, the other side, flagged around 40 inaccuracies. Andrew Dietderich, co-head of the firm’s restructuring group, wrote Judge Martin Glenn on April 18. “We deeply regret that this has occurred,” he said in the letter, available at this court document . The errors stemmed from AI “hallucinations.” Sullivan & Cromwell holds an enterprise license for OpenAI’s ChatGPT. Firm policies demand training on AI use. Those rules weren’t followed here.…

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