Professional Liability

In an order issued April 20, 2026, the Hon. Kai N. Scott of the Eastern District of Pennsylvania imposed sanctions on an attorney for including hallucinated AI-generated citations in a filing, for the second time in the same matter.

First, following the imposition of attorney’s fees as an unrelated sanction, Raja Rajan, Esquire, who had represented the defendants, filed a motion for leave to appeal of sanctions of defense counsel and a motion to withdraw as attorney for all defendants. The court found five citations that were either wholly hallucinated or did not support the proposition for which they were cited.  Bunce v. Visual Technology Innovations, Inc., et al, No. CV 23-1740, 2025 WL 4231632, at *1, n.1 (E.D. Pa. Jan. 21, 2025).  The court ordered Mr. Rajan to show cause why the filing did not violate Federal Rule of Civil Procedure 11(b)(2), which holds that, “[b]y presenting to the court a pleading, written motion, or other paper. . .an attorney. . .certifies that to the best of [his] knowledge, information, and belief, formed after an inquiry reasonable under the circumstances: (2) the claims, defenses, and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing law or for establishing new law[.]”  The court also noted that such citations in a filing potentially violated Pennsylvania Rule of Professional Conduct 3.3, Candor Toward the Tribunal.  The court ultimately imposed sanctions of $2,500 for that violation.

Following the conclusion of the underlying matter, the plaintiff sought travel costs for a cancelled deposition. In response, Mr. Rajan filed an omnibus motion seeking sanctions and objecting to the imposition of travel costs.  That motion again contained AI-hallucinated citations, which the plaintiff noted in his response.  The court explained that the standard for the review of conduct under Rule 11 is “reasonableness under the circumstances, [...] with reasonableness defined as an objective knowledge or belief at the time of the filing of a challenged paper that the claim was well-grounded in law and fact[;]” and that the Third Circuit has said that “Rule 11 requires only negligence[.]”  Bunce, 2026 WL 1082135, at *2.  The court ultimately held that there was no reasonable explanation for the inclusion of AI-generated citations, and that it is fundamental that attorneys verify that cited authority supports the proposition for which it is cited.  For this Rule 11 violation, the court imposed sanctions of $5,000, and required Mr. Rajan to complete additional CLE courses on AI and legal ethics, and provide proof of relevant CLEs he had previously taken.