Case studyHighProduction incidentAccuracy

Morgan & Morgan's own in-house AI legal tool hallucinated 8 of 9 case citations filed in federal court

Morgan & Morgan, P.A.·MX2.law, the firm's proprietary in-house AI legal research platform

An associate at Morgan & Morgan used the firm's own AI platform, MX2.law, to draft pretrial motions in a Wyoming product-liability suit against Walmart; the tool invented eight of the nine cases cited, and the motions were e-signed and filed without anyone checking the citations.

Blast radius
Three Morgan & Morgan attorneys were sanctioned by a federal court and fined a combined $5,000; the motions had to be withdrawn, and the episode was later cited against the same attorney in a separate Massachusetts court application.
Root cause
No human review step existed between the AI tool's output and the attorneys' e-signature on a court filing.
How it was caught
Opposing counsel for Walmart flagged the bogus citations to the court, prompting the judge to demand an explanation.
What changed
Not disclosed — a later court noted the firm had not described any new review process or change to how MX2.law is used since the sanctions.

Take-awayAn in-house AI tool used in core operations still needs a mandatory human verification gate before its output leaves the building.