The January 22, 2026 brief contained the hallucinated content, and a subsequent correction left material inaccuracies unresolved. Vice Chancellor Will issued a show-cause order on July 1. The firm has since asked the court to consider factual information about inconsistencies in its account before deciding whether to sanction the firm, Rollo, or both. The full scope of the AI-generated errors and the firm's internal review process remain under examination.
This case tests how a major Delaware corporate firm governed generative AI use, verified citations before filing, and handled remediation once errors surfaced. It represents an early, high-profile sanctions dispute over AI in legal filings and will likely shape how firms document AI policies and implement citation review procedures going forward. Attorneys should monitor the court's ruling for guidance on firm-level responsibility for AI-generated content and the procedural safeguards courts may now expect.