Company Sues OpenAI After Woman Allegedly Generated Fake Lawsuit Causing $300,000 In Legal Costs
Scott Olson/Getty Images
Nippon Life Insurance Company of America has filed a lawsuit against OpenAI, alleging that its chatbot, ChatGPT, provided a Nippon employee with incorrect legal guidance that encouraged her to try to reopen a lawsuit she had already settled with the company.
The employee, Graciela Dela Torre, contacted the attorneys who had represented her in a disability benefits claim against Nippon and asked about reopening the case. She believed the settlement agreement might have been reached because of “potential errors or omissions of important facts and documentation,” according to a complaint filed in the United States District Court for the Northern District of Illinois.
Dela Torre’s attorney told her that there were no such errors or omissions and reminded her that she had signed a release agreement that prevented her from reopening the case.
According to the lawsuit, after receiving that advice, Dela Torre uploaded her attorney’s message to ChatGPT and asked the chatbot whether she was being “gaslighted.” ChatGPT allegedly responded that the attorney’s message was gaslighting and claimed it invalidated her feelings, dismissed her perspective, and shifted responsibility for her dissatisfaction.
The lawsuit states that Dela Torre then fired her attorneys based on the chatbot’s response and began consulting ChatGPT about how to reopen her case against Nippon. Nippon claims the chatbot even generated a draft motion for her to reopen the case despite the existing settlement agreement between the parties.
After filing her motion to reopen the lawsuit, Dela Torre submitted 21 additional motions, one subpoena, and eight notices and statements, which Nippon alleges were all created using ChatGPT.
In an order dated February 13, 2025, the court ruled that Dela Torre could not reopen the case. However, on February 12, 2025, she filed a claim against Davies Life & Health and Allsup, LLC, and later amended the complaint to add Nippon as a defendant, asserting the same claims again, according to Nippon’s filing.
Nippon argues that “Dela Torre’s abuse of the judicial system, aided and abetted by OpenAI’s unlicensed practice of law,” caused the company “significant harm and reputational damage.” The company is seeking $300,000 in compensatory damages, $10 million in punitive damages, and a court order permanently prohibiting OpenAI from providing Dela Torre with legal advice or engaging in the practice of law in the state of Illinois.
About Post Author
