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Sullivan & Cromwell says AI-generated errors appeared in Manhattan bankruptcy court filing

Tuesday, April 21, 2026Rights & JusticeWell-covered3 frames

The Facts

  • Sullivan & Cromwell apologized to a federal bankruptcy judge for submitting a court filing that contained inaccurate citations and other errors generated by artificial intelligence.
  • The apology was made in a letter dated April 18 from Andrew Dietderich to Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan.
  • The errors included AI "hallucinations," meaning fabricated case citations, misquoted authorities, or non-existent legal sources.
  • The mistakes were discovered by lawyers at Boies Schiller Flexner, according to Dietderich's letter.
  • The flawed filing was made in early April in a bankruptcy matter in the Southern District of New York involving Prince Global Holdings or Prince Group.
  • Sullivan & Cromwell said its policies or protocols governing AI use were not followed when the document was prepared.
  • The firm said it was evaluating whether to make further enhancements to its internal training and review processes after the incident.
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Context

What does the firm mean by AI "hallucinations"?

In Dietderich's letter, the term refers to AI outputs that fabricate case citations, misquote legal authorities, or generate non-existent legal sources Business Insider,Reuters,CNA.

Who brought the errors to the court's attention?

According to the firm's letter, the mistakes were caught by Boies Schiller Flexner, and Dietderich said he thanked the firm for flagging them Reuters,CNA,Maryland Daily Reco….

What has Sullivan & Cromwell said it will do in response?

The firm said its AI procedures were not followed in this instance and that it is considering whether additional training or stronger review processes are needed Financial Times News,Bloomberg Business,news.bloomberglaw.c….

View all 22 sources

Wire services (2)

APCointelegraphUS Law Firm Apologizes For AI Hallucinations in Filing
ReutersReutersSullivan & Cromwell law firm apologizes for AI 'hallucinatio...

Independent coverage (20)

CityAMElite law firm apologises for AI 'hallucinations' in bankrup...
Silicon UKWall Street Law Firm Apologises For AI Errors | Silicon UK T...
LawFuelSullivan & Cromwell Apologises to Judge After Fabricated Cit...
Yahoo! FinanceLaw firm that charges $3,000 an hour caught using AI
BlockonomiSullivan & Cromwell Issues Court Apology After AI Generates ...
The GuardianAI hallucinations found in high-profile Wall Street law firm...
AOL.comAI hallucinations found in high-profile Wall Street law firm...
crypto.newsTop US law firm admits AI hallucinations in legal filing
Democratic UndergroundA.I. 'Hallucinations' Created Errors in Court Filing, Top La...
The Straits TimesAI 'hallucinations' created errors in US court filing, top l...
ReasonAI Hallucinations in Filing by a Top Law Firm
DNyuzA.I. 'Hallucinations' Created Errors in Court Filing, Top La...
The New York TimesA.I. 'Hallucinations' Created Errors in Court Filing, Top La...
Business InsiderAI hallucinated -- and now an elite law firm is profusely ...
Bloomberg BusinessTop Law Firm Apologizes to Bankruptcy Judge for AI Hallucina...
news.bloomberglaw.comTop Law Firm Apologizes to Bankruptcy Judge for AI Hallucina...
news.bloomberglaw.comSullivan & Cromwell Apologizes to Judge for AI Hallucination...
Maryland Daily RecordPremier Wall Street law firm apologizes for AI 'hallucinatio...
Financial Times NewsElite law firm Sullivan & Cromwell admits to AI 'hallucinati...
CNATop US law firm Sullivan & Cromwell apologises for AI 'hallu...
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