MyPillow CEO Mike Lindell has suffered a significant legal setback, losing a defamation case and being ordered to pay $2.3 million. Adding to his woes, his legal team was sanctioned and fined $6,000 for submitting court filings that included AI-generated hallucinations. The sanctions highlight growing concerns about the responsible use of artificial intelligence in legal proceedings, while the defamation verdict underscores the consequences of making false and damaging claims.