TLDR: Alabama is moving forward with awarding a new contract to attorney William R. Lunsford, who was previously removed from a high-profile civil rights case involving the Department of Corrections. This decision comes despite a federal judge’s ruling that Lunsford’s firm, Butler Snow LLP, submitted court filings containing fabricated legal citations generated by artificial intelligence.
Montgomery, Alabama – The state of Alabama is reportedly set to award a new contract to attorney William R. Lunsford, a lead litigator for the embattled Department of Corrections (ADOC), even after he and his firm, Butler Snow LLP, were removed from a significant civil rights lawsuit due to the use of artificial intelligence to generate fabricated legal citations. This development, reported on August 7, 2025, highlights an ongoing controversy surrounding AI’s role in legal practice and the state’s continued reliance on the firm.
U.S. District Judge Anna M. Manasco for the Northern District of Alabama had previously reprimanded and removed Lunsford, along with fellow Butler Snow attorneys Matthew B. Reeves and William J. Cranford, from a lawsuit against the ADOC. The judge’s decision, issued on July 25, 2025, stemmed from findings that Matthew B. Reeves had utilized ChatGPT for legal research, resulting in the submission of court documents containing non-existent case citations. Judge Manasco referred the matter to the Alabama State Bar Association and other licensing authorities, emphasizing that a mere fine would not suffice to rectify the ‘egregious misconduct’ and that ‘no lesser sanction will serve the necessary deterrent purpose, otherwise rectify this misconduct, or vindicate judicial authority.’
Butler Snow LLP acknowledged the errors, attributing them to ‘AI hallucinations’ and asserting that a broader internal investigation determined it to be an ‘isolated event’ within the firm, which employs over 400 attorneys nationally. Despite this admission and the judicial sanctions, the Alabama Attorney General’s office has reportedly maintained its confidence in Lunsford, with a representative stating, ‘Mr Lunsford remains the attorney general’s counsel of choice.’
Lunsford and Butler Snow have received substantial public funds from the state of Alabama, totaling over $40 million since 2021. This includes more than $14 million in fiscal year 2025, a $4.8 million contract awarded in December, and $14.9 million from amended contracts in July 2023, along with $7.68 million the month prior. These contracts are primarily for representing the state in lawsuits alleging wrongdoing by the ADOC, which faces federal scrutiny over its prison facilities and inmate conditions.
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This incident in Alabama is part of a growing national and global trend. A database tracking such occurrences has identified 106 instances worldwide where courts have found ‘AI hallucinations’ in official legal documents, leading to consequences for attorneys. The case underscores the critical need for legal professionals to exercise due diligence and verify information generated by AI tools, as the legal community grapples with integrating advanced technology while upholding standards of accuracy and candor to the court.
