A Georgia Court of Appeals panel has vacated part of a trial court ruling in a Henry County Schools employment case after finding that the order relied on fabricated legal citations produced by generative AI, CBS News Atlanta reported.

The case stems from three related lawsuits filed by former Henry County Schools employees who alleged race discrimination and other claims. The school district appealed after a trial judge denied its motions to dismiss the lawsuits. In a June 10 opinion, the Court of Appeals said the trial court's order contained multiple legal errors, including case law it described as hallucinated by generative AI.

The order had been drafted by the plaintiffs' attorney and then signed by the judge. The appellate panel called the submission of such an order troubling and said it was regrettable that the trial court failed to catch the errors before issuing it. The court reversed portions of the lower court's decision, vacated the ruling on the federal Title VII claims, and returned the case for reconsideration under the proper legal standards.

The panel reminded attorneys and judges of their professional responsibilities when they use AI in legal work and noted that courts cannot rely on fabricated authorities regardless of how they were created. It also referenced an earlier 2026 Georgia Supreme Court case involving AI-generated citations and encouraged trial courts to review proposed orders carefully before adopting them.

Legal researcher Damien Charlotin has documented more than 1,600 AI hallucination incidents in courts and arbitration proceedings worldwide, including more than 22 in Georgia. CBS News Atlanta said it asked the Georgia Bar Association whether it has a formal disciplinary process for such cases and had received no response by publication.

Source: CBS News Atlanta - https://www.cbsnews.com/atlanta/news/georgia-appeals-court-warns-against-ai-generated-fake-legal-citations-after-henry-county-schools-ruling/