AI Hallucination Incident

The Oregon Court of Appeals has sanctioned Salem attorney William Ghiorso with a $10,000 fine for submitting an opening brief containing at least 15 fabricated case citations and 9 nonexistent quotations. The court attributed the errors to AI "hallucinations"—instances where generative AI generated convincing but false legal information. The penalty marks the first time an Oregon appellate court has considered attorney fees as a sanction alternative to fines, though it ultimately imposed the monetary penalty after Ghiorso implemented new safeguards.