Two New Large Libel Models Lawsuits, Though Alleging Mischaracterization Rather Than Outright Hallucination

These closely related lawsuits are different, at least in degree, from previous lawsuits over allegedly defamatory AI output: Rather than alleging thoroughgoing hallucination, or (as in Battle v. Microsoft) the merging of two unrelated documents about similarly named people, they involve claims that AI output summarizing published documents overstates the allegations in those documents—a sort of claim that's pretty common in normal libel litigation against newspapers.

1. The SEC charged Sergii Grybniak with violating

[1] the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, and

[2] the registration provisions of Sections 5(a) and (c) of the Securities Act ….