LiveVideo.AI Corp lawyer sanctioned for fabricated case law in SDNY
In the case of LiveVideo.AI Corp. v. Redstone, a lawyer submitted filings containing hallucinated case law. The S.D.N.Y. court imposed an adverse costs order of $80,056 and referred the attorney to the bar.
The AI generated plausible but entirely non-existent judicial precedents that were filed in a federal court.
Key facts
- What
- In the case of LiveVideo.AI Corp.
- Incident date
- Jun 9, 2026
- Who
- LiveVideo.AI Corp.
- Failure mode
- Hallucination
- AI surface
- Chatbot
- Severity
- Medium
What happened
A lawyer representing LiveVideo.AI Corp. filed legal documents in the Southern District of New York that contained fabricated case law. The court identified the hallucinations and issued an adverse costs order against the party. The attorney was also referred to the bar for disciplinary action.
What broke inside the model
- 01 · TriggerA user asks for a fact, a citation, or a figure.
- 02 · Model stepThe model writes a fluent, confident answer.
- 03 · Control gapNothing ties the claim back to a real source.
- 04 · FailureA fabricated fact ships as if it were verified.
- 05 · ConsequenceThe false claim reaches a customer, a court, or the public.
Confidence holds, and even spikes, as the claim detaches from any source.
The generative AI tool used for legal research hallucinated non-existent judicial precedents. The system failed to verify the citations against actual legal records, producing plausible but fake case law.
What it cost
Sources
- Reader-SubmittedAI Hallucination Cases Database - Damien Charlotindamiencharlotin.com
- Court FilingLivevideo.AI Corp v. Redstone et al, No. 1:2024cv06290law.justia.com
Cite this entry
https://failureindex.ai/failures/livevideo-corp-lawyer-sanctioned-filing-fabricatedAI Failure Index. "LiveVideo.AI Corp lawyer sanctioned for fabricated case law in SDNY" (FI-0583). Realm Labs. https://failureindex.ai/failures/livevideo-corp-lawyer-sanctioned-filing-fabricated (indexed Jun 16, 2026).Data fields CC-BY 4.0, prose citation permitted. Incident ID FI-0583. Full dataset at /data.
Note from Realm Labs, the Index steward
How Realm would have caught this
- Prism
- OmniGuard
- AI Detection & Response (AIDR)
A runtime layer that watches the model's internal state can flag the moment a model commits to a claim it has no support for, and hold or reroute the response before it reaches a user. Realm reads those signals in real time rather than grading the transcript after the fact.