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

A federal judge dismissed with prejudice a whistleblower lawsuit against the LA Film School, which alleged student loan fraud and inflated job placement figures. The claims were found to be outside the statute of limitations. Additionally, the judge sanctioned the claimants' attorney for submitting a legal brief generated by ChatGPT. The lawsuit, filed in 2024 by two former executives, accused the institution of a massive scheme, but the case was thrown out following the AI misuse.