The judge was stunned: why did the multi-million lawsuit against AIG collapse?
A request to certify a class action lawsuit for 110 million shekels against the insurance company ended in a complete withdrawal by the plaintiff after the court revealed that the documents submitted were based on artificial intelligence hallucinations.
According to a report by ynet, a request to certify a class action lawsuit for approximately 110 million shekels against the insurance company AIG ended in a complete withdrawal by the plaintiff and legal costs of 20,000 shekels charged against him.
The lawsuit, filed by a businessman, claimed that the insurance company was violating its legal obligation to provide a human response within six minutes. However, AIG proved through its attorneys that the law permits an average annual deviation of up to 15%, a requirement the company met properly.
Alongside the incorrect legal interpretation, the decisive blow to the lawsuit came from a technological direction: Tel Aviv District Court Judge Hadas Ovadia discovered that the pleadings provided by the plaintiff's counsel were based on AI hallucinations. The documents included quotes and references to five legal precedents that do not exist in reality, which were invented by artificial intelligence tools.
Following the court's recommendation, the plaintiff was forced to agree to withdraw the request before it was decided on its merits. The judge refrained from imposing personal costs on the lawyer, but sharply criticized the blind and uncontrolled use of technology, and ordered the plaintiff to pay AIG legal costs in the amount of 20,000 shekels for the frivolous proceeding.
