Are you ready for this? OpenAI was sued for practicing law without a license!
The ABAJournal.com reported that “OpenAI has been sued for practicing law without a license, accused of providing faulty legal advice to a woman seeking disability benefits…..and OpenAI has been accused of practicing law without a license in a lawsuit brought by Nippon Life Insurance Co. of America.” The March 6, 2026 article entitled " OpenAI sued for practicing law without a license” (https://tinyurl.com/2swze9ss) included these comments:
According to the insurer’s complaint, which was filed on Wednesday in the Northern District of Illinois, OpenAI’s artificial intelligence platform ChatGPT pushed a woman seeking disability benefits to breach a settlement agreement and file dozens of motions that “serve no legitimate legal or procedural purpose.”
Graciela Dela Torre reached a settlement with Nippon in January 2024, but later asked her attorney to reopen the case after suspecting potential errors, the complaint says. When Dela Torre’s attorney reminded her that she signed a document releasing Nippon from any further causes of action and that the case had been dismissed, she uploaded his response to ChatGPT and asked if she was being “gaslighted.”
ChatGPT affirmed, leading Dela Torre to fire her attorney and attempt to challenge the settlement herself, the complaint says. She asked ChatGPT to generate proposed legal arguments and documents, which she used in a motion seeking to reopen the case.
“ChatGPT was aware of the settlement agreement between the parties,” the complaint says. “Nevertheless, it generated legal arguments and drafting assistance that encouraged and reinforced Dela Torre’s desire to challenge the agreement.
“This assistance included the formulation of legally questionable arguments and the drafting of a motion seeking relief inconsistent with the agreement, which Dela Torre ultimately used in an effort to breach its terms,” the complaint also says.
Dela Torre later filed 21 motions, one subpoena and eight notices and statements in the case, all with the assistance of ChatGPT, the complaint says. When the court denied her motion, she again used ChatGPT to bring a new lawsuit against Nippon.
“Due to Dela Torre’s abuse of the judicial system, aided and abetted by OpenAI’s unlicensed practice of law, Nippon has sustained significant harm and reputational damage,” the complaint says.
A spokesperson for OpenAI told Law360 that “this complaint lacks any merit whatsoever.”
Anyone surprised?