Two job seekers have filed a proposed class action in California court alleging Eightfold AI, whose hiring platform is used by Microsoft and PayPal, compiles reports on applicants, ranking their "quality of education" and labelling them "introvert", without notice or a chance to dispute errors, breaching the Fair Credit Reporting Act. Eightfold says it uses only data shared by candidates or customers.
A sanctions motion dated Jan. 16 in state Superior Court in Danbury accuses Nicholas Mingione, lawyer for Gencor Contracting Corp., of filing motions citing nonexistent cases and fabricated quotes. Mingione said his research software has an AI component and withdrew the first motion, but the sanctions motion says the refiled version repeated the same fabricated quote.
An AI-generated article on the Tasmania Tours website, posted in July 2025, promoted "Weldborough Hot Springs", which do not exist, sending tourists, including a group of 24 drivers, to the local pub asking for directions. Owner Scott Hennessy of Australian Tours and Cruises said "Our AI has messed up completely" and that all AI-generated blog posts had been taken down.
Japanese police have arrested Tetsuro Chiba, 31, accused of selling AI-generated pornographic images of more than 300 celebrities, from a collection of 520,000, in sets of 14 between December 2024 and May 2025, charging extra for requested celebrities. Profits allegedly topped $70,000. Making such deepfakes is not illegal in Japan, but making them commercially is.
Voice actor Jarosław Łukomski's case against a company over an online ad for septic tanks, which used an AI model of his voice without consent, is set to open on 23 January at Warsaw's Regional Court, billed as Poland's first such trial. He seeks his usual fee plus compensation; his lawyer says the firm argues Polish law does not regulate AI.
Who did it: HYBRID AI Hallucination Cases database
A judgment in a 2011 partition suit, dated 27 January 2026 and issued in the name of Bengaluru Additional City Civil Judge Madhu N.R., includes what reads as pasted chatbot dialogue: offers to "tighten the language", "Just say the word", and a draft on life interest followed by the correction "not the life interest". Its findings on the issues trail off at "In the".
Who did it: HYBRID AI Hallucination Cases database
Judge F. Dennis Saylor IV referred attorney Roger A. Peace to the Massachusetts Board of Bar Overseers after finding what appeared to be AI-generated citations to nonexistent authority in his client's filings. Peace blamed a "version control mistake" and a "clerical error"; the judge called that "somewhat less than forthcoming", noting it never addressed whether AI was used.
