Another day, another sanctions opinion involving a lawyer who filed AI-generated legal work product riddled with hallucinated cases. This time, it's the 11th Circuit. The court's opinion reads like something that should be satire but unfortunately ...
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AI Isn't the Problem. Lazy Lawyering Is.

Another day, another sanctions opinion involving a lawyer who filed AI-generated legal work product riddled with hallucinated cases.

This time, it's the 11th Circuit.

The court's opinion reads like something that should be satire but unfortunately isn't. Counsel submitted an opening brief citing at least eight nonexistent cases. After opposing counsel pointed out the problem, he tried to fix it by withdrawing the bad citations. Except the eight cases he "withdrew" weren't the same eight fake cases from his opening brief.

Worse still?

The replacement list consisted of eight more hallucinated cases.

You almost couldn't script it better.

The 11th Circuit responded exactly as it should have. It reminded lawyers that competence requires "legal knowledge, skill, thoroughness and preparation." It emphasized that AI is no substitute for actual intelligence. And it referred the attorney for disciplinary proceedings.

Good.

But here's what bothers me about the inevitable reaction to opinions like this.

People will say, "See? AI is dangerous."

No. That's the wrong lesson.

AI didn't file the brief.

The lawyer did.

AI is an extraordinary tool. But it never replaces my judgment. Nor should it.

I would never file a brief without manually checking every citation and every quotation. I don't care whether those citations came from ChatGPT, Lexis, Westlaw, a first-year associate, or my own memory.

Verification is the job.

In fact, this isn't really an AI problem at all. It's the same professional obligation lawyers have always had.

When Lexis or Westlaw gives me a case, I Shepardize it before relying on it. I confirm that the quotation actually says what I claim it says. I make sure the proposition I'm citing is still good law.

That's not because I distrust Lexis or Westlaw. It's because I'm the one signing the brief. AI deserves exactly the same treatment.

The lawyers getting sanctioned aren't victims of unreliable technology. They're victims of their own willingness to skip the last—and most important—step in the process. They accepted the first answer a machine gave them without exercising independent professional judgment.

That's not innovation. That's laziness.

Every time another sanctions opinion like this gets published, it reinforces the false narrative that AI is incompatible with competent lawyering.

The opposite is true.

Lawyers who learn how to use AI responsibly will have a significant advantage over those who don't. They'll work more efficiently, spot more issues, and deliver better value to clients.

But only if they remember one simple rule: AI can draft your brief. It cannot sign your name.

And that's why the responsibility—for every citation, every quotation, every argument, and every word filed with a court—will always belong to the lawyer, not the software.

Apple v. OpenAI offers a master class in spotting trade secret theft before it's too late

Apple's newly filed trade secret lawsuit against OpenAI contains an allegation that should make every employer's ears perk up.

According to the complaint, multiple departing Apple employees allegedly emailed Apple's confidential information to their personal email accounts on their way out the door. Apple also claims that some former employees later used Apple's confidential and trade secret information to help OpenAI develop competing hardware.

Whether Apple ultimately proves those allegations is for the courts to decide.

But the behavior it describes is one of the oldest—and most obvious—red flags in the employee-theft playbook.

When someone suddenly starts forwarding company files to Gmail the week before resigning, odds are they're not creating a personal scrapbook.

The good news is that employees who steal information often leave breadcrumbs. The key is knowing what to look for.
 
1. Forwarding files to personal email. This is the classic tell. Employees suddenly emailing themselves spreadsheets, customer lists, source code, pricing information, engineering documents, contracts, or other confidential files shortly before giving notice should immediately raise concerns. Sometimes they'll even justify it by saying they're "working from home" or "need it for reference." Maybe. But if that activity spikes immediately before resignation, it's worth investigating.

2. Unusual downloading or printing activity. Most employees have predictable habits. Then, two weeks before resigning, they download thousands of files they've never previously accessed. Or print hundreds of pages. Or export an entire CRM database. Volume matters. Timing matters even more.

3. Plugging in personal USB drives or external hard drives. USB devices remain one of the fastest ways to walk out with gigabytes of proprietary information. Most organizations can monitor—or even block—these transfers. If your systems aren't logging USB activity, they should be.

4. Cloud uploads. Dropbox. Google Drive. OneDrive. iCloud. Personal cloud storage has largely replaced the thumb drive as the preferred method of taking company information. Watch for large uploads to personal accounts, particularly after hours. 

5. Accessing information unrelated to the employee's job. Salespeople suddenly reviewing engineering files. Engineers downloading HR records. Finance employees opening customer databases. Curiosity isn't always innocent. When employees begin accessing information outside their normal responsibilities shortly before departure, ask why.

6. Odd-hour activity. A longtime employee who always worked 8:30 to 5 suddenly starts logging in at midnight. Or on weekends. Or while supposedly on vacation. Sometimes there's a perfectly innocent explanation. Sometimes there isn't.

7. Deleting evidence. Ironically, people trying to hide theft often create another red flag. Large-scale email deletions. Deleted folders. Cleared browser histories. Attempts to disable logging. Employees trying to erase their tracks often leave new ones.

8. Sudden interest in confidential projects. Employees who are leaving sometimes begin asking for access they've never needed before. "I just wanted to understand the project." Maybe. Or maybe they wanted one last chance to copy it.

9. Competitor timing. An employee resigns on Friday. Starts at your direct competitor Monday. Combined with suspicious electronic activity before departure, that timing deserves attention. Competition is legal. Taking your former employer's trade secrets to help your new employer compete isn't.

Apple may eventually prove its allegations. OpenAI may successfully defend against them. That's what litigation is for. Prevention, however, is far easier and much less expensive than litigation. Indeed, employers shouldn't wait until they're filing a lawsuit to think about protecting their confidential information.

Have written confidentiality agreements.
Limit access to sensitive information on a need-to-know basis.
Monitor unusual data activity.
Conduct meaningful exit interviews.
Collect company devices immediately.
Disable access promptly.

And if your IT team sees an employee forwarding confidential files to a personal Gmail account the day before they resign? Don't ignore it.

More often than not, trade secret theft announces itself before the employee ever walks out the door. The question is whether anyone notices.

WIRTW #802: the 'it's a small world' edition

I love to travel. It's not just about the places you see or the things you do. It's also about the people you meet.

"Where are you from?" is one of the best conversation starters when you're traveling. That simple question just led to one of the most surreal experiences of my life.

My wife and I were on the ferry from Split to Korčula when a family sat down next to us, and we started chatting.

"So, where are you from?" the dad asked.

"Cleveland," my wife replied.

"But I grew up in Philly," I added.

"Philly? Me too," he said, giving me a fist bump.

"Where in Philly?"

"The Northeast."

"Same! Where did you go to high school?"

And that's when things got downright weird.

We didn't go to the same high school. As it turns out, he went to Central and I went to George Washington. But we both graduated in 1990, attended the same middle school, and discovered we have dozens of mutual friends. He even remembered my middle school homeroom number, a fact I had long forgotten.

Forty years after leaving Baldi Middle School, we finally became friends … on a ferry in Croatia. All because one of us asked a fellow traveler, "Where are you from?"

The world is a big place. Sometimes, though, it has a funny way of reminding us just how small it really is.




Here's what I read this week that you should read, too.


The Big Ten: EEOC's new agenda — via Robin Shea's Employment & Labor Insider




Workplace Investigations: Five Key Takeaways, Part OnePart Two, and Part Three — via Employment Law Worldview

Time to Talk about "The Rizz" — via Robin Schooling

The End of Independent Federal Agencies Will Change Your Business — via Harvard Business Review


Questions for Fathers — via The Chief Organizer Blog

When the boss gets involved, the investigation is already in trouble.

Last week, The New York Times published a deeply reported investigation alleging that Donald Trump personally intervened with FIFA President Gianni Infantino to have U.S. striker Folarin "Flo" Balogon’s red card suspended so he could play in the United States' World Cup Round of 16 match against Belgium.

Whether you're a soccer fan or not almost doesn’t matter.

The allegation is what matters.

The President of the United States allegedly used the weight of his office to influence what should have been an independent disciplinary decision. And according to the report, it worked.

That's not just a sports story. It's also a workplace investigation story.

One of the quickest ways to undermine an internal investigation is for someone with power to signal what outcome they want before the facts have been gathered.

It doesn't have to be as dramatic as a president calling the head of FIFA.

It can be the CEO who tells HR, "I know she's lying."

Or the founder who says, "He's too valuable to lose."

Or the executive who reminds everyone that the accused employee "has always been loyal to this company."

Once that happens, the investigation isn't really about finding the truth anymore. It’s about justifying a preferred outcome.

Employees notice.
Witnesses notice.
And if the matter ends up in litigation, juries notice too.

I've defended countless employment cases over the years. One theme appears over and over again: plaintiffs don't just attack the employer's decision. They also attack the integrity of the process that produced it.

They ask who made the decision.
Who influenced the decision.
Whether HR was actually independent.
Whether investigators interviewed the right witnesses.
Whether evidence that favored the employee was ignored.
Whether similarly situated employees were treated differently because someone important wanted a particular result.

Those questions matter because courts and juries understand something every workplace leader should understand: A fair process is often just as important as the ultimate decision.

When investigations appear predetermined, employers create problems that extend far beyond the individual case.

They lose credibility with employees.

They discourage people from reporting misconduct because they believe the outcome is already decided.

Managers stop trusting HR.

And in litigation, what might have been a defensible termination suddenly looks like retaliation, discrimination, favoritism, or pretext.

The legal issue often isn't that someone with authority participated in the decision. Senior leaders are supposed to make important decisions.

The problem is when that authority becomes improper influence.

HR and investigators need enough independence to follow the evidence wherever it leads—even if the facts point in an uncomfortable direction or involve a high-performing executive, a rainmaker, or someone the CEO likes.

Good investigations don't ask, "What outcome does leadership want?" They ask, "What actually happened?"

That’s the only question that protects the integrity of the process.

If The New York Times' reporting is accurate, FIFA didn't just overturn a red card. It told the world that the right phone call can change the rules.

That's a terrible message for a sport. It's an even worse message for a workplace.

Because once employees believe investigations are decided by influence instead of evidence, credibility disappears. And once credibility disappears, lawsuits usually aren't far behind.

The 4th Circuit just made wage-and-hour class actions a lot harder to certify

Not every wage-and-hour lawsuit belongs as a class action.

That's the lesson from the 4th Circuit's recent decision in Overby v. Anheuser-Busch, where the court vacated certification of a Virginia wage-and-hour class alleging employees weren't paid for mandatory pre- and post-shift work.

The case involved hourly employees at Anheuser-Busch's Williamsburg brewery. Employees claimed they performed a variety of unpaid activities outside their scheduled shifts, including donning and doffing personal protective equipment, complying with COVID-era screening protocols, attending shift-handoff meetings, and putting away tools. The district court certified a class of essentially all hourly brewery employees, concluding that the central question was whether Anheuser-Busch had a policy of paying only scheduled shift time despite requiring additional work.

The 4th Circuit wasn't buying it.

The court's opinion builds on its 2024 decision in Stafford v. Bojangles' Restaurants, which warned courts against defining common questions at too high a level of abstraction. According to Judge Wilkinson, broad formulations like "Did the company fail to pay employees for required work?" sound common, but they often conceal the very differences that make class treatment inappropriate.

And there were lots of differences here.

Some employees participated in shift-handoff meetings. Others didn't. Some employees wore certain PPE at home before arriving at work. Others changed at the brewery. Some employees worked during the COVID-screening period. Others were hired after those protocols ended. Some workers were governed by one version of Virginia's wage laws, while others were subject to a materially different statutory framework after legislative amendments took effect in 2022.

Those distinctions mattered because liability couldn't be determined with a single answer applicable to everyone. Instead, the court saw a case that would devolve into a series of employee-by-employee inquiries about what work was performed, where it was performed, when it was performed, and whether it was legally compensable.

That's poison for Rule 23's commonality and predominance requirements.

For employers, this decision reinforces an increasingly important trend in class-action jurisprudence. Courts are becoming less willing to certify sweeping workplace classes based solely on generalized allegations of companywide policies. Instead, they are demanding evidence that liability can actually be determined through common proof.

That's especially significant in off-the-clock cases. While plaintiffs often frame these lawsuits around a single alleged policy, the underlying facts frequently vary from employee to employee, department to department, location to location, and even shift to shift.

The 4th Circuit's message is straightforward: courts must look beneath the label of a "common policy" and examine whether the employees' actual experiences are sufficiently similar to justify collective treatment. If answering the liability question requires hundreds of mini-trials, class certification is likely off the table.

Employers should take note. A well-developed factual record showing differences in job duties, work practices, locations, schedules, and compensation procedures can be a powerful weapon against class certification. Overby demonstrates that even where employees allege a common wage-and-hour violation, meaningful variations among workers may be enough to keep the case from proceeding as a class action.

Class actions remain an important tool for addressing widespread workplace violations. But as the 4th Circuit reminded everyone in Overby, a common-policy allegation is not enough to certify a class if the underlying facts aren't common too.

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