Bang Energy founder Jack Owoc is all in on artificial intelligence – just check out his latest brand launch.
But that love for new tech has now made his legal headache even worse as a Florida federal judge is weighing whether to ban him from filing court paperwork without permission after he submitted AI-generated documents featuring imaginary legal citations.
In June, Owoc filed a motion to dismiss a lawsuit brought by Monster Energy, which is seeking to enforce the $377 million judgment it won against him in 2022 during the false advertising jury trial that ultimately led to the bankruptcy of Bang parent company Vital Pharmaceuticals.
That motion, however, appears to have been written by an AI model and included “hallucinations” that cite legal cases “that do not appear to exist” and were likely invented by the computer software, according to a response by Monster last month.
“Courts in this district have imposed sanctions for ‘the submission of a hallucinated, fake case citation,’” the response warned.
Judge Panayotta D. Augustin-Birch counted at least 11 fake citations across two filings by Owoc.
Owoc is representing himself in the case. In a motion filed yesterday, Owoc apologized to the court for the false citations, stating that he and his wife can’t afford an attorney and financial hardship has required him to “rely solely on free, publicly available internet resources to locate and review case law,” leading to “unintentional inclusion of inaccurate or incomplete citations.”
Owoc further argued that Monster’s “relentless actions” destroyed his business and “have also struck directly at his family,” warning that his home is scheduled for foreclosure on August 20, which would leave his family, including six children aged from 1 to 12, “without a home.”
“These children, who have done nothing wrong, now face homelessness as a direct consequence of Monster Energy Company’s aggressive pursuit of Defendant,” the filing claims. “This is not merely an attack on a businessman; it is an attack on a father and his young family.”
Attorneys for Monster argued this claim was unwarranted, noting that Monster has not deliberately sought to seize Owoc’s personal property.
According to Law360, Owoc also apologized in person during a hearing regarding the submission of false citations.
“I know AI is causing courts a nightmare,” Owoc said. “But we did not do anything intentional, but we corrected it and did file it this morning downstairs at the court’s terminal. I just want to ask for the court’s forgiveness and we won’t do it again.”
He argued against any restrictions on his ability to file, arguing it would prevent him from being able to properly access the court and hinder his case.
“Don’t let them [Monster] play you like they did with everybody else,” he said. “They are one of the most vexatious litigants to walk the planet earth.”
AI hallucinations in court filings have become a fast-growing crisis for the legal system, as even seasoned attorneys have been caught citing fictional cases.
Last year, the American Bar Association issued new ethics guidance for lawyers using AI in drafting filings, warning members to review all documents for accuracy before filing and that they must still adhere to standards to protect their clients and must be ready to stand behind the filings they submit to judges.
But that hasn’t stopped some lawyers from making the same mistake as Owoc, leading to sanctions and other disciplinary measures.
While no order blocking Owoc from additional filings has been made yet, he has received a similar restriction in the ongoing bankruptcy case for Vital Pharmaceuticals due to “meritless, repetitive, and harassing filings.” Both Owoc and his wife, Megan Owoc, are now required to receive court permission before submitting new documents.
Since Vital Pharmaceuticals filed for bankruptcy in 2022, Owoc has apparently struggled to mount a personal comeback, and has been consistently mired in these ongoing court cases.
Last year, Owoc sought to use the AI trend to market a new beverage brand: Ai Energy.
Now, the RTD energy drink line introduced a new line this summer called Ai UltraDopa, which is made with Cognizin. The products are available for purchase online direct-to-consumer.