TBA Law Blog


Posted by: Azya Thornton on Mar 16, 2026

ChatGPT maker OpenAI has been accused in a new lawsuit of practicing law without a U.S. license and helping a former disability claimant breach a settlement and flood a federal court docket with meritless filings. Reuters reports that Nippon Life Insurance Company of America alleges that OpenAI wrongfully provided legal assistance to a woman who sought to reopen a lawsuit that had already been settled and dismissed. Nippon claims OpenAI encouraged the woman, an employee of a logistics company insured by Nippon, to continue pursuing the already-settled disability case and that it spent significant time and resources responding to filings generated with the help of ChatGPT. The lawsuit is believed to be among the first to accuse a major AI developer of engaging in the unauthorized practice of law through a consumer-facing chatbot.