Attorneys defending State Farm in a Los Angeles Superior Court lawsuit over a 2020 house fire admitted that motions they filed cited cases, quotes, and legal holdings that do not exist, generated using AI. Opposing counsel discovered the fabricated citations and disclosed them at an August 2026 court conference. Lead trial counsel apologized to the court and the plaintiff, saying he was unaware his co-counsel had used AI to draft the filings but accepted full responsibility. The case adds to a growing global tracker of AI-hallucination incidents in litigation, which has now logged nearly 1,900 cases.