Drinks company Bang Energy founder Jack Owoc appeared before U.S. Magistrate Judge Panayotta D. Augustin-Birch in Fort Lauderdale federal court, where he was ordered to explain why he included fake, AI-generated legal citations in his motion to dismiss Monster Energy's lawsuit to enforce a $377 million judgment it obtained over false advertising claims following a 2022 jury trial in California.
Eyal Berger of Akerman LLP, representing Monster Energy, said monetary penalties wouldn't stop Owoc from filing documents with false legal citations, and he urged the court to impose a ban similar to the one Owoc received last month from a Florida bankruptcy judge.
Judge Augustin-Birch didn't immediately issue an order Monday, but she did admonish Owoc for filing documents containing false legal information.
"I just want you to understand that when you represent yourself, you cannot rely on AI and not check to make sure that the cases you are using are correct propositions," she said. "Just because you are not an attorney, that does not mean you do not have to follow the rules."
Monster Energy brought a March 2024 lawsuit to enforce the California federal judgment it obtained in September 2022. One month later, Vital Pharmaceuticals Inc., which manufactured Bang Energy drinks, brought a voluntary Chapter 11 bankruptcy petition in the Southern District of Florida.
In July 2023, Monster Energy acquired Vital and the Bang brand for $362 million following approval from U.S. Bankruptcy Judge Peter D. Russin.
In June, Owoc brought a motion to "enforce the one satisfaction rule and bar additional collection by Monster Energy and to require Monster Energy to dismiss all claims and remove all liens." He argued that the judgment was satisfied by Monster Energy's purchase of Vital's assets in the bankruptcy sale.
Monster Energy responded on July 8, saying in a footnote of its filing that Owoc may have included "hallucinated" legal cases created by artificial intelligence.
Judge Augustin-Birch said during the hearing that the court saw Monster Energy's footnote and counted 11 fake citations, including six in Owoc's motion and five in the subsequent reply.
"It appears to the court that because of the volumes, the citations and some of the language that is used, the court took some time to try to decipher all of this and it appears to the court that AI may have been used in or order for you to prepare both your motion and your reply," she said.
When asked to address the errors, Owoc apologized to the court. He explained that he and his wife are raising six children and can't afford an attorney. Berger clarified to the court that Monster Energy isn't foreclosing on Owoc's home.
"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 don't do it again."
Berger told the court that it should enter an injunction similar to one Judge Russin entered against Owoc in July for bringing pro se filings challenging court orders throughout Vital's bankruptcy case, saying the injunction is needed so everyone can avoid incurring similar expenses and wasting time on fake legal citations.
"When you ask me for a remedy, clearly a monetary remedy would have no impact, given the size of the judgment," Berger said.
On July 17, Judge Russin ordered Owoc and his wife Megan to obtain the court's permission to bring any further "motions, pleadings, or papers" in the Ch. 11 case after deeming him a "vexatious litigant."
"A litigant's right of access to the courts is not absolute," the judge stated. "When the right to file is abused — through meritless, repetitive, and harassing filings — the court not only may act but must act."
Owoc called Berger's demand "outrageous" and that he won't have the ability to defend himself in court.
"Don't let them play you like they did with everybody else," he told the judge, referring to Monster Energy. "They are one of the most vexatious litigants to walk the planet earth."
Owoc is representing himself.
Monster Energy is represented by Eyal Berger and Amanda L. Klopp of Akerman LLP, and Brittani A. Jackson, Allison L. Libeu and Christopher Galeano of Hueston Hennigan LLP.
The case is Monster Energy Co. v. Owoc et al., case number 0:24-cv-60357, in the U.S. District Court for the Southern District of Florida.
--Editing by Adam LoBelia.
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