Federal Court Considers Sanctions Against Major Law Firm for AI-Generated Fake Citations in Alabama Prison Case

Baxley Maniscalco Injury, Family, & Estate Attorneys

Professional hands using a wooden-handled rubber stamp with red ink on legal documents, representing official legal proceedings and document authentication.
Table of Contents

    A Cautionary Tale of AI Misuse in Legal Practice

    In a case that underscores the growing challenges artificial intelligence poses to legal practice, U.S. District Judge Anna Manasco is considering sanctions against Butler Snow, a major law firm defending Alabama’s prison system, after attorney Matthew Reeves used ChatGPT to generate false legal citations in court filings. 

    The incident occurred in a lawsuit filed by incarcerated plaintiff Frankie Johnson against Alabama prison officials.

    On Wednesday, May 21, 2025, Judge Manasco held a hearing in Birmingham to address the fabricated citations, calling the situation “proof positive” that current sanctions nationwide for AI-related legal violations have been insufficient. 

    The case serves as a stark warning to legal practitioners about the dangers of unverified AI use in legal research and filing preparation.

    The Underlying Prison Violence Case

    Johnson’s lawsuit stems from a troubling pattern of alleged violence during his incarceration at the William E. Donaldson prison outside Birmingham. According to court documents, Johnson claims he was stabbed approximately 20 times across multiple incidents between December 2019 and November 2020.

    The most serious incident allegedly occurred in November 2020, when Johnson claims he was handcuffed by an officer and brought to the prison yard, where another prisoner attacked him with an ice pick, stabbing him five to six times as two correctional officers looked on. Johnson alleges that one officer actually encouraged the attack in retaliation for a previous argument.

    In 2021, Johnson filed suit against Alabama prison officials alleging failures in safety, rampant violence, understaffing, overcrowding, and pervasive corruption in Alabama’s prison system. 

    The Alabama Attorney General’s office contracted with Butler Snow to defend the case, continuing a relationship worth millions of dollars to defend the state’s troubled prison system.

    The AI Citation Scandal Unfolds

    The fabricated citations came to light during a routine scheduling dispute over Johnson’s deposition. Butler Snow attorneys sought to expedite Johnson’s deposition despite outstanding discovery disputes, arguing in a May 7, 2025, filing that case law mandated quick depositions of incarcerated plaintiffs.

    “The Eleventh Circuit and district courts routinely authorize incarcerated depositions when proper notice is given and the deposition is relevant to claims or defenses, notwithstanding other discovery disputes,” the firm wrote, citing four cases to support their position.

    The problem: all four cases were entirely fabricated by artificial intelligence.

    While some citations resembled real cases, none supported the firm’s legal argument. 

    For example, one citation referenced a 2021 case, “Kelley v City of Birmingham,” but Johnson’s attorneys discovered that the only actual case with that title was decided by the Alabama Court of Appeals in 1939 regarding a speeding ticket resolution.


    An infographic illustrating the AI citation scandal.

    Attorney Takes Responsibility

    In a court declaration, Reeves admitted to using ChatGPT without proper verification. 

    He explained that while reviewing filings drafted by a junior colleague, he wanted to add citations for what he “believed to be well-established points of law.”

    “I knew generally about ChatGPT,” Reeves wrote, explaining that he searched for supporting case law, which “immediately identified purportedly applicable citations for those points of law.” 

    However, in his “haste to finalize the motions and get them filed,” he “failed to verify the case citations returned by ChatGPT through independent review in Westlaw or Pacer.”

    “I sincerely regret this lapse in diligence and judgment,” Reeves stated. “I take full responsibility.”

    Professional Responsibility Implications

    This incident highlights several critical professional responsibility issues that all legal practitioners must consider:

    • Duty of Competence: Under the Alabama Rules of Professional Conduct, attorneys have a fundamental duty to provide competent representation, which includes staying current with technology and understanding its limitations.
    • Duty of Candor to the Court: Filing fabricated case citations violates attorneys’ essential duty of honesty to courts and can constitute contempt of court or professional misconduct.
    • Supervision Requirements: Law firms must establish adequate systems to supervise both junior attorneys and the use of emerging technologies like AI.

    Clients rely on attorneys to provide accurate legal research and representation. AI errors can undermine client interests and expose attorneys to malpractice liability.

    The Growing AI Challenge in Legal Practice

    Legal researcher Damien Charlotin, who tracks AI-related legal violations globally, has identified 106 instances worldwide where courts have found “AI hallucinations” in court documents. 

    He notes an “acceleration” in such cases, suggesting the problem is becoming more widespread as attorneys increasingly adopt AI tools.

    Recent examples include a Florida attorney suspended for one year after citing fabricated AI-generated cases, and a California federal court ordering a firm to pay over $30,000 in legal fees for similar violations. 

    Judge Manasco’s suggestion that previous sanctions have been insufficient indicates that courts may begin imposing more severe penalties.


    An infographic illustrating key duties at risk.

    Butler Snow’s Response and Firm Policies

    During the hearing, Butler Snow attorneys were “effusively apologetic” and indicated they would accept whatever sanctions Judge Manasco deemed appropriate. 

    The firm reportedly has policies requiring attorneys to seek approval before using AI for legal research, though Reeves admitted he failed to comply with these requirements.

    William Lunsford, who heads Butler Snow’s constitutional and civil rights litigation practice and holds the state contract, began reviewing prior filings to identify any additional instances of false citations. “This is very fresh and raw,” Lunsford told the court. “The firm’s response to this is not complete yet.”

    Best Practices for AI Use in Legal Practice

    This case underscores essential guidelines for attorneys considering AI tools:

    • Verification Requirements: All AI-generated research must be independently verified through traditional legal databases like Westlaw, Lexis, or official court records.
    • Firm Policies: Law firms should establish clear policies governing AI use, including approval processes and verification requirements.
    • Training and Education: Attorneys and support staff need training on AI capabilities, limitations, and proper use protocols.
    • Client Disclosure: Consider whether clients should be informed about AI use in their legal matters and what safeguards are in place.

    Implement multiple layers of review for documents containing AI-assisted research.

    Broader Context: Alabama’s Prison Defense Contracts

    The incident occurs within the context of Butler Snow’s substantial relationship with Alabama’s prison system. 

    The firm has contracts worth millions of dollars to defend various civil rights cases against the Alabama Department of Corrections, including a federal lawsuit brought by the U.S. Department of Justice that alleges constitutional violations.

    One contract alone was worth nearly $15 million over two years, leading some Alabama lawmakers to question the state’s spending on external legal counsel. 

    Despite the AI citation scandal, an attorney general’s office representative stated at the hearing that “Mr Lunsford remains the attorney general’s counsel of choice.”

    Looking Ahead: Sanctions and Precedent

    Judge Manasco allowed Butler Snow 10 days to file a motion explaining their process for addressing the problem before determining sanctions. Potential penalties could include fines, mandated continuing legal education, referrals to licensing organizations, and temporary suspensions.

    The case may establish important precedent for how courts handle AI-related violations in legal practice. As Judge Manasco noted, insufficient sanctions in previous cases have failed to deter similar conduct, suggesting more severe penalties may be forthcoming.

    Lessons for Alabama Legal Practitioners

    This incident serves as a crucial reminder for all Alabama attorneys about the importance of maintaining professional standards while adopting new technologies. Key takeaways include:

    The legal profession’s adoption of AI tools must be balanced with fundamental duties of competence, honesty, and client protection. While AI can enhance the efficiency of legal research and practice, it cannot replace an attorney’s professional judgment and verification responsibilities.

    For clients, this case underscores the importance of collaborating with law firms that have established protocols for quality control and technology management. Understanding how your legal team approaches AI and technology can provide insight into their commitment to professional excellence and accurate representation.

    At Baxley Maniscalco, we recognize that maintaining the highest professional standards is crucial to delivering effective legal representation. While we embrace technology to enhance our practice efficiency, we never compromise on accuracy, verification, and our fundamental duties to clients and the courts. 

    Our commitment to professional excellence means you can trust that your legal matters receive the careful attention and accurate research they deserve.

    Contact us today for a confidential consultation.