2026-08-18 / Signal #5
State Farm’s lawyers admitted their AI invented fake court cases
“State Farm’s lawyers asked an AI to write their motions. The AI made up the law.”
The Story
Defense lawyers for State Farm in a Los Angeles homeowner lawsuit filed motions containing nonexistent cases, fake quotes, and invented holdings. The attorney who used the Irys AI tool believed it was checking citations against Westlaw; lead counsel apologized to the court and plaintiff.
Why It Matters
The courtroom is becoming another place where “the model said so” is an actual defense.
Evidence
CalMatters; court filings and lawyer admissions.
Sources
Daily scan: 2026-08-18