Sullivan & Cromwell Reportedly Filed Emergency Bankruptcy Motion Containing AI-Generated Legal Errors

April 9, 2026

Sullivan & Cromwell reportedly filed an emergency motion in the Chapter 15 bankruptcy case of Prince Global Holdings that contained numerous citation and legal inaccuracies. The firm later acknowledged that some errors were AI hallucinations and that its AI-use and citation-review policies had not been followed. After opposing counsel identified the problems, the firm reportedly undertook a formal remedial response.

This incident highlights the need for robust AI governance and responsible AI practices in the legal sector, particularly in high-stakes cases. The use of AI-generated content without proper review and validation can lead to serious consequences, including legal errors and reputational damage. As the AI industry continues to evolve, it is essential that lawyers and law firms prioritize trustworthiness and accuracy in their AI-powered workflows.

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Alleged deployer

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Alleged developer

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Alleged harmed parties

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Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.