Insurance Giant Sues OpenAI for Unauthorized Practice of Law. Sidley Austin Filed It. $10 Million in Punitive Damages.

Nippon Life Insurance Company sued OpenAI in federal court in Chicago, alleging ChatGPT practiced law without a license. A disability claimant uploaded her lawyer's email into ChatGPT, which validated her concerns, encouraged her to fire her attorney, and then drafted dozens of court filings to reopen a settled case. No human oversight. No license. No guardrails. Sidley Austin is lead counsel. They're asking for $10 million in punitive damages and a declaration that OpenAI violated Illinois' unauthorized practice of law statute.