Top Wall Street Law Firm Apologizes to Judge for AI Hallucination in Court Filing

The law firm told a federal judge that a motion contained inaccurate citations and other mistakes linked in part to AI hallucinations.

Snow falls outside the New York Stock Exchange on Wall Street in New York City on Feb. 23, 2026. Seth Wenig/AP Photo

A prestigious Wall Street law firm has apologized to a federal judge for a filing that included erroneous content generated by artificial intelligence (AI).

Sullivan & Cromwell, the Manhattan-based white-shoe firm, sent a letter on April 18 to Chief Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York, apologizing for submitting a motion that contained “inaccurate citations and other errors” caused in part by AI hallucinations, the phenomenon of AI chatbots generating plausible-sounding but false information.