--- title: "Judge Refuses to Dismiss Libel Suit Against OpenAI" description: "The lawsuit against OpenAI allges that ChatGPT fabricated an entire fake lawsuit accusing the plaintiff of embezzlement." date: "2024-01-19" modified: "2024-01-19" authors: - name: "Frank Landymore" job_title: "Contributing Writer" link: "https://futurism.com/authors/flandymore" url: "https://futurism.com/the-byte/judge-refuses-dismiss-libel-suit-openai" categories: - "Artificial Intelligence" - "OpenAI" tags: - "chatgpt" - "generative ai" - "OpenAI" - "the digest" --- # Judge Refuses to Dismiss Libel Suit Against OpenAI ![The lawsuit against OpenAI allges that ChatGPT fabricated an entire fake lawsuit accusing the plaintiff of embezzlement.]() *\Image: Justin Sullivan via Getty / Futurism\* ## See You In Court OpenAI has been trying to get a [libel lawsuit targeting ChatGPT]() thrown out of court. But a Georgia judge has now ruled against the AI company, allowing the defamation suit to proceed in what could be a decisive case regarding OpenAI's liability over what its chatbot says, [*Ars Technica* reports](). The [suit was filed last June]() by gun rights activist Mark Walters, who alleges that ChatGPT falsely accused him of embezzlement. In November, OpenAI fired back by arguing that no defamation occurred because the chatbot is not a publication, adding that there was "no actual malice, no listener who believed the alleged defamatory content, and thus no harm to any reputation," [as quoted by *MediaPost*](). These arguments apparently weren't convincing to the judge, however, who filed their order last week. "We are pleased the court denied the motion to dismiss so that the parties will have an opportunity to explore, and obtain a decision on, the merits of the case," John Monroe, Walter's attorney, told Ars. ## Far Out Claims According to the suit, Walter was alerted to the alleged defamation by a journalist, Fred Riehl, who used the chatbot to summarize a completely unrelated complaint filed by the Second Amendment Foundation (SAF), a nonprofit that Walters was associated with. Totally off the mark, ChatGPT instead invented an entirely fabricated lawsuit — complete with a complaint and a fake case number, notes *Ars* — accusing Walters of embezzling funds from the SAF. It's a glaring example of the "hallucinations" that plague large language models, in which they conjure up incorrect information and present it as fact. This form of misinformation is unintentional, but there's no denying that the tech can be used to [deliberately forge *dis*information](), too. ## On the Case *Ars* notes several legal arguments that OpenAI has fielded, which could shed some light on why the judge denied its motion to dismiss. Perhaps most important is the startup's claim that Walters is a public figure, in which case he would have to prove there was "actual malice" involved. However, Monroe argued in an November [court filing]() that OpenAI has yet to prove that Walters is in fact such a figure. OpenAI also fell back on a disclaimer that warns that its bot's responses may be inaccurate and should be verified. The onus, therefore, would fall on the person who prompted the response, in this case the journalist Riehl (who didn't publish the chatbot's troubling output). But, as Monroe argues, a "disclaimer does not make an otherwise libelous statement non-libelous," as quoted by *Ars*. These are strong rebuttals — and they'll need to be. Defamation is notoriously difficult to prove in the US, especially for public figures. Still, that the judge has allowed this case to proceed is encouraging news for Walters. By contrast, it's an extremely worrying sign for OpenAI, which already has its [fair share]() of [lawsuits]() [against it](), as well as [an ongoing FTC investigation]() into whether its chatbot made harmful statements about users. **More on OpenAI:** *[OpenAI Axes Ban on Military Contracts, Reveals Deal With Pentagon]()* ## Author At Futurism, my work has often centered on bringing a sense of clarity and insight to complex topics ranging from the regulation of emerging technologies to the esoteric ideologies of Silicon Valley executives, while striving not to lose the poetic sense of awe inspired by often-obscure fields like astrophysics and quantum computing. I broke the story of CNET using AI to produce articles that turned out to be riddled with factual errors and plagiarism — a dam-breaking inflection point, as I've reported, that's inspired copycats and endless discourse while beguiling stakeholders ranging from tech giants to purveyors of spam around the web. My work at Futurism has been cited by publications including CBS News, the Los Angeles Times, Vice, Gizmodo, Engadget, the Verge, and Vanity Fair. I grew up in locales ranging from India to China, and now live in the exotic suburbs of Virginia. In my free time, I'm an avid reader of weird sci-fi literature, an aficionado of East Asian cinema, and, regrettably, a relapsed gamer. Allegedly, I’m working on a debut novel, currently untitled. ### Author social links [Bluesky]()