OpenAI Wins Defamation Case Over ChatGPT’s Invented Allegations

A Georgia judge has dismissed a defamation lawsuit against OpenAI over false statements generated by ChatGPT, ruling the company did not act with actual malice.

Key points:

  • A Georgia judge dismissed a lawsuit against OpenAI over false information generated by ChatGPT.
  • The plaintiff, radio host Mark Walters, failed to prove actual malice or negligence.
  • The ruling marks an early legal victory for AI developers facing liability claims over model hallucinations.

OpenAI has won a closely watched lawsuit in Georgia that tested the legal risks posed by artificial intelligence-generated misinformation. Judge Tracie Cason of Gwinnett County Superior Court dismissed radio host Mark Walters’ defamation case, ruling that Walters had not shown OpenAI acted with negligence or “actual malice” when its ChatGPT tool generated false statements about him in response to a third-party query.

Walters, a pro-gun rights commentator, filed suit in 2023 after a reporter from AmmoLand.com asked ChatGPT about gun-related litigation and received a response falsely describing Walters as a defendant in a fictional sexual harassment case. The reporter later determined the case was entirely fabricated and did not publish the claims. Nonetheless, Walters alleged that ChatGPT’s response was “obviously defamatory” and accused OpenAI of knowingly distributing falsehoods through its product.

In her opinion, Judge Cason rejected that argument, emphasizing that OpenAI had issued extensive disclaimers about ChatGPT’s limitations and made “industry-leading efforts” to reduce hallucinations. “OpenAI's extensive warnings to users that errors of this kind could occur negate any possibility that a jury could find OpenAI acted with actual malice here,” the judge wrote, according to Reuters.

The ruling represents a significant early victory for generative AI developers, as courts begin to address the liability landscape for AI-generated falsehoods. The legal standard for defamation requires that the publisher of the statement acted either negligently or with actual malice—something Walters failed to prove, the court concluded.

OpenAI, represented by Theodore Boutrous Jr. of Gibson Dunn and Matthew Macdonald of Wilson Sonsini, welcomed the court’s decision. “We appreciate the judge's careful decision and its findings about our efforts to responsibly educate users and improve our models,” the company said in a statement.

Walters’ attorney, John Monroe, said Monday that his team was reviewing the court’s ruling. The case, Walters v. OpenAI LLC, No. 23-A-04860-2, was heard in Gwinnett County Superior Court in Georgia.

Customer Stories

See how leading enterprise in-house teams have scaled smarter with Legal.io's high-caliber flex talent.

More from Legal.io


Taft Combines with Sherman & Howard in Latest Big Law Merger

Am Law 100 firm Taft Stettinius & Hollister is set to combine with Sherman & Howard in 2025, creating a legal powerhouse with over 1,000 lawyers and a projected combined revenue of $810M.

Sep 25, 2024
Read More
June 9, 2023 Edition #162
June 9, 2023 Edition #162

Published weekly on Friday, the Legal.io Newsletter covers the latest in legal, talent & tech

Jun 09, 2023
Read More
Community Spotlight: Jessica Vander Ploeg, Senior Director of Legal Ops at Micro Focus
Community Spotlight: Jessica Vander Ploeg, Senior Director of Legal Ops at Micro Focus

Join our host and CEO, Pieter Gunst, as he dives into the career journey of Jessica Vander Ploeg, VP, Legal Operations at Micro Focus.

Feb 02, 2023
Read More
FTC Launches "Operation AI Comply" to Combat Deceptive AI Claims
FTC Launches "Operation AI Comply" to Combat Deceptive AI Claims

The FTC announced Operation AI Comply, a crackdown on companies alleged to have used misleading marketing practices when making claims about their AI functionalities.

Sep 26, 2024
Read More
Kellye Walker Named Deere & Co. SVP, CLO and Head of Worldwide Public Affairs
Kellye Walker Named Deere & Co. SVP, CLO and Head of Worldwide Public Affairs

Kellye Walker is the new SVP, CLO, and Head of Worldwide Public Affairs at Deere & Company, succeeding Mary Jones who is retiring after 27 years.

Apr 04, 2024
Read More
Ready to hire?

Schedule a free consultation to discuss your hiring needs.

Free 15-min consultation
Legal.io Platform
5 star reviews
Hiring made smarter

Easy-to-use platform for hiring legal talent, managing spend, and optimizing your panel — plus an average savings of 50%.

Need Immediate Help?

Submit a hiring request and let our experts handle the entire process for you.