OpenAI sued over ChatGPT providing legal assistance without licence
Nippon Life Insurance Company of America sued OpenAI, alleging that ChatGPT provided unauthorized legal assistance that enabled a former disability claimant to reopen a settled case, generating meritless court filings that cost the insurer over USD 300,000 in legal fees. OpenAI denies the allegations lack merit.
What happened
Nippon Life Insurance Company of America filed a federal lawsuit in Chicago against OpenAI alleging that Graciela Dela Torre, whose disability case had been settled and dismissed 'with prejudice' in January 2024, used ChatGPT to reopen the case. Dela Torre allegedly uploaded emails from her lawyer into the chatbot, which validated her suspicions and drafted dozens of motions and a new lawsuit.
Nippon Life claims it was forced to spend over USD 300,000 in legal fees to respond to 'frivolous' and 'hallucinated' filings, which a judge eventually rejected.
Reported impact
Nippon Life seeks USD 300,000 in compensatory damages, USD 10 million in punitive damages, and a court order permanently barring OpenAI from violating Illinois' unauthorised practice of law rules.
For the claimant, the episode may have prolonged her dispute and exposed her to the risk of court sanctions.
Index analysis
Nippon argues that ChatGPT went beyond providing general legal information by validating the claimant's views, advising her about litigation strategy, and drafting specific motions and pleadings tailored to an active case.
The complaint highlights that, despite marketing demonstrations showing ChatGPT passing bar exams, it is not admitted to practice law anywhere and has no professional licence or regulatory oversight.
Governance controls
Critics note that OpenAI's consumer product design allowed users to obtain seemingly authoritative, case-specific legal text without robust warnings, controls, or supervision to prevent AI-generated documents from being filed directly in court.
Classification
Sources and evidence
Sources not yet published
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