Two New York lawyers filed a brief in Mata v. Avianca citing cases that ChatGPT had invented, and stood by them when the court questioned them. A federal judge imposed a $5,000 joint sanction, opening the wave of AI-citation cases.
Sanctions may be uninsurable; defense costs, disciplinary proceedings and client malpractice claims are the coverable exposure.
This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.