Judge sanctions LGBCoin defendants for fabricating case citations in class action
In De Ford v. Koutoulas, Judge Paul Byron imposed sanctions on LGBCoin Ltd and defendant Koutoulas for repeatedly submitting invented legal authorities.
Judge Paul Byron of the Middle District of Florida issued a sanctioning order in the De Ford v. Koutoulas class action, targeting LGBCoin Ltd and its representative Koutoulas for repeatedly inserting fabricated case law into court filings. Plaintiffs compiled a spreadsheet showing more than forty instances of invented citations across eight separate submissions. This judgment aligns with a nationwide judicial push to penalize AI-generated citation errors.
The underlying lawsuit accuses the parties of misleading investors about the "Let's Go Brandon" cryptocurrency, a token whose name originated from a misheard chant at a NASCAR event. In addition to monetary penalties, the court imposed terminating sanctions on Koutoulas for his conduct. The decision was posted on Westlaw after being decided last month.
Why it matters
It highlights courts' willingness to punish deceptive AI-driven legal filings and protects investors from fraudulent crypto schemes.
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