Sullivan & Cromwell Apologizes After AI Hallucinations Taint Legal Filing

Sullivan & Cromwell is a leading New York corporate law firm with more than 900 lawyers, and its bankruptcy partners charge more than $2,000 an hour. The controversy arose from its representation of British Virgin Islands-appointed liquidators in US bankruptcy proceedings involving Prince Global Holdings, the parent company of Cambodia’s Prince Group. Even its high-priced professional services failed to prevent fabricated AI-generated material from entering a filing, underscoring that ultimate responsibility for verification remains with people.

On April 9, 2026, the firm filed an emergency motion with the US Bankruptcy Court for the Southern District of New York that contained about 40 errors, including fabricated case law, miscited provisions of the US Bankruptcy Code and false summaries. After Boies Schiller Flexner exposed the problems, restructuring head Andrew Dietderich apologized in an April 18 letter to Chief Judge Martin Glenn, acknowledging that the firm had failed to follow its internal AI policy. The firm has since filed a corrected version.