PANews reported on April 22 that, according to Decrypt , the prominent law firm Sullivan & Cromwell admitted in a U.S. bankruptcy court that its use of generative AI in a bankruptcy case involving Prince Group resulted in "illusory" citations, including fabricated and distorted legal precedents and provisions, due to a failure to verify the output as required by internal regulations. The errors appeared in a motion filed on April 9 , and the firm has since withdrawn the original document and submitted a revised version. The opposing firm , Boies Schiller Flexner, identified at least 28 incorrect citations, including non-existent court quotes and incorrectly attributed judgments, and requested a postponement of the hearing. Sullivan & Cromwell stated that its internal policy requires lawyers to undergo training before using AI and to "trust nothing and verify everything," and that this action violated that policy.