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Lawyers for Chicago Housing Authority Used ChatGPT to Cite Nonexistent Court Case

CHICAGO, ILLINOIS, JUL 15 – Goldberg Segalla's use of ChatGPT led to fabricated legal citations in a Chicago Housing Authority case, prompting firm-wide AI policy reforms and court sanctions.

  • On July 17, 2025, lawyers for the Chicago Housing Authority used ChatGPT to cite a nonexistent court case in a lead paint lawsuit motion at the Daley Center.
  • This error occurred amid a lack of clear regulatory guidance and firm policies banning AI use, leading to one lawyer, Danielle Malaty, including an unverified AI-generated citation and her subsequent termination.
  • Three incidents have surfaced where lawyers cited fictitious cases generated by AI, prompting Cook County Judge Thomas Cushing to hold a special hearing requiring affected attorneys and firms to explain these lapses.
  • Goldberg Segalla billed CHA over $389,900 for services between March and December 2024, apologized for the AI-related error as a "serious lapse in professionalism," and implemented firm-wide AI use policies and attorney re-education.
  • The incidents exposed gaps in verifying AI-generated legal content, risking misinformed court rulings and eroding public confidence, thereby prompting calls for swift regulatory action and enforceable standards in legal AI use.
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Chicago TribuneChicago Tribune
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Lawyers for Chicago Housing Authority used ChatGPT to cite nonexistent court case

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·Chicago, United States
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Daily Maverick broke the news in South Africa on Tuesday, July 15, 2025.
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