Sanction teardown · North Carolina Court of Appeals, USA · 2026-03-18
Forest Ridge Townhomes Corporation of Greensboro v. Heag Pain Management Center et al.
What happened
In North Carolina Court of Appeals, USA, a filing relied on Perplexity.AI to help draft legal argument. The court identified the following problems with the citations in that filing:
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Fabricated (Exhibits & Submissions)Respondents submitted an exhibit titled 'Perplexity.AI Answers' containing AI-generated legal authorities and links; the court found some cited authorities irrelevant and appearing to be hallucinated and noted counsel's admission of using Perplexity.AI.
Which AI tool
Perplexity.AI. Note: Charlotin's public database records tool attribution only where a court order, brief, or reporting on the matter states it explicitly; "unidentified" or "implied" means the record indicates AI use but does not name a specific product — we do not guess.
Outcome
Not specified in source record.
How Citation Safe would have caught this
Citation Safe runs three deterministic layers before a brief is filed: (1) does the citation exist against CourtListener's database of published opinions, (2) if quoted, does that exact language appear in the source, (3) does the cited case actually support the proposition it is cited for. Fabricated case citations fail Layer 1. Fabricated or misattributed quotations fail Layer 2 even when the underlying case is real. Misrepresented holdings — a real case cited for a proposition it does not support — are the target of Layer 3. None of these checks involve asking another language model whether the citation looks right; they are lookups and text-matches against the actual source, which is why a hallucinated citation has to survive a direct lookup against the authoritative source — not another model's opinion — to earn a VERIFIED stamp; our measured false-verify rate is published live at /quality.
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Source: https://www.damiencharlotin.com/documents/1761/Forest_Ridge_v._Heag_USA_18_March_2026.pdf, via Damien Charlotin's public AI Hallucination Cases Database (CC0).