US | Incident Report
Regulatory Action
2025-09-24
Puerto Rico federal judge orders $24.4k fees over AI-style bogus citations in FIFA case
AI Model: Unspecified (suspected generative AI; attorneys denied AI use) Legal TechHallucinationsSanctionsCitation VerificationFederal Courts
I. Executive Summary
A federal judge in Puerto Rico sanctioned two plaintiffs’ lawyers in an antitrust suit involving FIFA and the Puerto Rico Soccer League after filings contained at least 55 inaccurate or nonexistent legal citations. The court awarded more than $24,400 in legal fees to defense counsel, rejecting a larger fee request and emphasizing deterrence. The judge said the volume of defective citations suggested AI misuse even though the attorneys denied using AI.
II. Key Facts
- Chief U.S. District Judge Raúl Arias-Marxuach awarded >$24,400 in fees to defense firms (incl. Paul Weiss and Sidley Austin).
- Court filings included at least 55 defective citations; some were inaccurate or nonexistent.
- The sanctioned attorneys represented the Puerto Rico Soccer League in Puerto Rico Soccer League NFP et al v. Federación Puertorriqueña de Fútbol et al.
- The judge reduced the requested amount (nearly $60,000) and framed the sanction as a deterrent.
III. Regulatory & Ethical Implications
Cost-shifting sanctions for citation defects are becoming a practical regulatory lever against negligent AI-assisted drafting. Even where AI use is disputed, courts may infer AI involvement from error patterns, raising evidentiary and disclosure questions. Firms should implement controls that make provenance and verification defensible: citation-check workflows, supervision logs, and clear accountability for signatories.