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Technology

Jul. 9, 2026

Business owner sues OpenAI over ChatGPT's allegedly faulty legal guidance

A Northern District lawsuit alleges OpenAI misrepresented ChatGPT's ability to provide reliable business and legal advice, leading a California business owner to rely on defective confidentiality agreements and other inaccurate guidance. The suit adds to a growing wave of litigation testing AI companies' liability for chatbot-generated content.

A new lawsuit filed in the Northern District of California claims OpenAI is liable for allegedly inaccurate business and legal advice generated by ChatGPT.

According to the complaint, which was filed by attorney Jeremy Kimmelman of The Law Offices of James L. Arrasmith, OpenAI falsely represented that ChatGPT could serve as a capable business assistant, provide reliable advice and draft usable documents.

The plaintiff, who owns a bridal design business, says she purchased...

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