L.A. Film School Escapes Whistleblower Lawsuit as Judge Punishes Lawyer for AI Use

L.A. Film School Escapes Whistleblower Lawsuit as Judge Punishes Lawyer for AI Use hakkında magazin dünyasında yaşanan en son ayrıntılar ve sıcak gelişmeler netleşti. Oct 26, 2026 1:14pm PT L.A. Film School Escapes Whistleblower Lawsuit as Judge Punishes Lawyer for AI Use By Gene Maddaus Plus Icon Gene Maddaus Senior Media Writer @GeneMaddaus Latest SAG-AFTRA Extends Duncan Crabtree-Ireland’s Contract and Adds CEO to Title 2 days ago Did Karen Bass Expand Film Incentives?

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Nithya Raman Campaign Flags ‘Whopper’ Claim 3 days ago Agencies and Producers Back U.S. Tax Incentive as ‘First Step’ Toward Hollywood Recovery 4 days ago See All Add us as a Google Preferred Source Comments A federal judge has thrown out a whistleblower lawsuit that accused the Los Angeles Film School of massive student loan fraud and has sanctioned the claimants’ attorney for filing a brief generated by ChatGPT.

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The whistleblowers, two former executives at the school, filed a false claims suit in 2024, alleging a scheme in which the school paid outside vendors to hire its own students, inflating its job placement figures. The school paid $1 million to resolve a Department of Education audit into that and other issues in 2020, but the executives alleged that the school had lied to DOE investigators and hidden the full scope of the fraud.

Related Stories Anime’s Pay Divide Runs Between Studios That Take Risks and Those That Don’t, Says Tokyo Festival Advisor Bill Nighy Joins Caitriona Balfe in Alfonso Cuaron Series ‘Ascension’ at Apple TV In a ruling issued Friday , Judge Stanley Blumenfeld dismissed the suit with prejudice, finding that much of the alleged conduct fell outside the six-year statute of limitations. He also imposed a $5,000 fine on attorney Mark Kleiman for submitting a brief without disclosing that it had been written by AI.

The 76-page brief , filed in April, cited a non-existent case, Darwich v. Department of Economic Security.

It also cited two additional cases that were real but did not support the proposition for which they were advanced — one of which was authored by Blumenfeld. One of the claimants, Dave Phillips, later acknowledged that he had drafted the brief himself using ChatGPT and given it to his attorney to review.

Kleiman submitted the brief with a disclaimer attempting to disavow any involvement in it other than to file it to meet a deadline. The attorney later explained to the court that his relationships with Phillips and with the other claimant, Ben Chaib, had broken down.

A week after submitting the brief, Kleiman told opposition counsel that his clients had written it with AI and that he was going to withdraw from the case. In issuing sanctions, the judge faulted Kleiman for “a sustained pattern of neglect” and for violations of court orders and of ethical standards.

“Kleiman filed an obviously deficient brief that he had not even fully read and for which he did not check whether the citations were to real cases — let alone that they supported the brief’s assertions — despite knowing that his nonlawyer clients had prepared the brief using AI,” the judge wrote. Granting the school’s motion to dismiss, the judge found that the AI-generated opposition brief “contains almost no citations to legal authority or to the (complaint), and advances legal arguments that appear untethered to the (False Claims Act) or Ninth Circuit law.” The judge also faulted Phillips and Chaib for not getting a new attorney months earlier, when the relationship began to deteriorate.

He noted that they were “not blameless” in the AI use, but elected not to sanction them because they are not lawyers. Phillips, a former VP of

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