Sullivan & Cromwell has apologised to a federal judge after submitting a legal filing containing about 40 incorrect citations and errors linked to AI hallucinations.
The firm said the mistakes appeared in an emergency motion filed in the US Bankruptcy Court for the Southern District of New York, raising concerns about oversight in high-stakes legal work.
“We deeply regret that this has occurred,”
Said Andrew Dietderich, co-head of the firm’s global restructuring team, in a letter to Chief Judge Martin Glenn.
Dietderich added that while the firm has policies requiring verification of AI-generated content, those procedures were not followed in this instance, allowing errors to pass through review.
The case adds to a growing number of AI-related legal missteps, with legal technologist Damien Charlotin tracking more than 1,300 incidents globally, most involving fabricated citations.
Sullivan & Cromwell, which previously represented FTX in its bankruptcy, said it has launched an internal investigation and implemented immediate remedial measures.
The firm is now reviewing whether to strengthen training and verification processes after a rival law firm identified the errors and alerted the court.