Law Firms — AI Hallucination Penalties Escalate as Lawyers Continue Citing Fake Cases; WilmerHale's $35M Bill Draws Scrutiny Over Billing Practices

Law Firms · 2026-04-11

TODAY'S SIGNAL — Three distinct pressure points are converging on law firms this week. First, AI hallucination risk remains an active liability: courts are imposing escalating penalties on lawyers who cite fabricated cases generated by large language models, yet the problem persists — signaling that firm-level AI governance is failing to keep pace with adoption. Second, billing transparency is…