LOS ANGELES—Attorneys representing a proposed federal class action of OnlyFans users were notified last Thursday that they are to appear before the judge in the case to determine whether they will face sanctions for utilizing artificial intelligence (AI) hallucinations in official filings.
The parent company of OnlyFans.com, Fenix International Limited, is being sued alongside so-called "chatter" agencies by unnamed plaintiffs for violating civil fraud laws and violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.
RICO was created to fight organized crime, but can be used in civil lawsuits against potentially "corrupt" organizations.
OnlyFans.com and its overwhelming popularity gave way to the creation of a cottage industry of "account management" companies that popular adult content creators can hire to help manage the influx of users who direct message the user's account.
Disgruntled users were recruited by attorney Robert B. Carey of Hagens Berman Sobol Shapiro LLP after he initiated his "Save the Fans" marketing campaign across social media networks, criticizing popular content creators on OnlyFans for using "professional chatters" hired to impersonate creators to maximize reach and revenue.
As progress was made in the case, attorneys representing OnlyFans noted that attorneys for the plaintiffs relied on false or incorrect case citations. It turns out that one of the attorneys attached to the case was under significant personal stress and, being overextended, used a generative artificial intelligence tool in official filings with the court. Carey and his fellow attorneys motioned the judge for leave to make corrections to the impacted filings. Attorneys for OnlyFans opposed the motion for leave.
On Sept. 4, U.S. District Judge Fred W. Slaughter for the Central District of California ordered the plaintiff attorneys to appear in a hearing set for September 25 on the use of AI in their filings. According to a court document (below), the in-person hearing will discuss "why [the plaintiffs] should not be sanctioned under Rule 11 and the court’s inherent power for the misuse of artificial intelligence."
Here, the term "Rule 11" refers to a provision in the Federal Rules of Civil Procedure (FRCP).
The FRCP is the universal policy that governs civil court proceedings in federal district courts throughout the United States and its territories. Rule 11 of the FRCP requires that the attorneys in a civil case must file documents with the court that are derived from a reasonable inquiry.
These documents must be truthful in nature (not false or misleading) and legally grounded. If a judge rules that an attorney violated Rule 11, sanctions against the offending attorneys, parties or both could be levied.
These penalties include fines to the court, monetary penalties, or even dismissal of a civil complaint if the judge sees fit. All of this is designed to prevent "improper presentations of claims, defenses, or contentions" in filings made with a federal district court by attorneys on behalf of their clients.
Judge Slaughter's order for Carey and his fellow attorneys to appear before him on Sept. 25 will determine if the AI hallucinations that the attorneys for OnlyFans detected in several motion filings merit sanctions against the plaintiffs, their attorneys, or the actual proposed federal class itself.
The OnlyFans attorneys maintain that the plaintiffs should not be permitted to refile updated and corrected filings.
"Plaintiffs decided to '[use] AI-generated content in the Opposition Briefs without reviewing the content,'" reads a motion of opposition filed on behalf of the OnlyFans parent company. "Fenix should not pay the price for plaintiffs’ misconduct."
