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


4 Traits All Mentors Have in Common
4 Traits All Mentors Have in Common

Whether it’s professional or personal growth, finding a mentor can be a great idea! Mentors are great for creating a map for your long-term success. They are likely more senior in theirs and can share their experiences and knowledge.  So, how do you find a mentor? This process can be challenging, because mentors can differ greatly and come from many areas of your life. Since you’ll want to put a lot of time and energy into this relationship, there are a few traits you’ll want to look for:

Apr 29, 2020
Read More
California Supreme Court Demands Answers on AI Use in Bar Exam Questions

California’s Supreme Court demands answers from the State Bar after learning AI was used without approval to draft questions for the February 2025 bar exam.

Apr 24, 2025
Read More
4 Basic Tools Every In-House Legal Team Needs
4 Basic Tools Every In-House Legal Team Needs

Legal Operations is a fairly recent addition to the legal industry, and, as a department tasked with managing and streamlining the efforts of in-house counsel, they have their work cut out for them. Although there are many options for Legal Operations, in this article we will focus on the 4 most effective tools to help in-house legal departments. Keep in mind, these solutions may vary from business to business, but this list generally addresses all in-house legal department needs.

Apr 13, 2020
Read More
Legal.io Newsletter - April 22, 2022
Legal.io Newsletter - April 22, 2022

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

Apr 22, 2022
Read More
How to Handle Behavioral Interview Questions - And 20 Examples to Help You Prepare 
How to Handle Behavioral Interview Questions - And 20 Examples to Help You Prepare 

Behavioral questions are an increasingly common focus of job interviews. Let’s take a look at how to approach questions of this type, as well as 20 examples of common behavioral questions to get you ready for your next interview. 

Jun 01, 2020
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.