Listen to the article
Minnesota Solar Contractor Sues Google Over AI-Generated False Lawsuit Claims
Solar contractor Wolf River Electric has filed a defamation lawsuit against Google, alleging the tech giant’s artificial intelligence system fabricated and published false claims that the company faced legal action from Minnesota’s Attorney General.
The lawsuit, filed in March 2025, states that Google’s Gemini AI generated fictional content claiming Wolf River had been sued for deceptive sales practices, despite the company never facing such litigation. According to court documents, the AI system produced detailed but entirely fabricated accounts of a nonexistent lawsuit, complete with fake allegations about “misleading customers about cost savings, using high-pressure tactics, and tricking homeowners into signing binding contracts with hidden fees.”
“We put a lot of time and energy into building up a good name,” Wolf River founder Justin Nielsen told The New York Times. “When customers see a red flag like that, it’s damn near impossible to win them back.”
The Isanti-based solar contractor began noticing an unusual pattern of canceled contracts in late 2024. When executives investigated, they discovered Google’s AI was generating false information in search results. The system cited legitimate sources — including the Minnesota Star Tribune, KROC News, and an April 2022 Attorney General press release — but none of these sources mentioned Wolf River.
In fact, the Attorney General’s announcement named ten other solar companies and lenders in actual litigation, including Brio Energy, Bello Solar Energy, and Avolta Power. Wolf River was not among them. The lawsuit contends Google’s AI effectively mixed up unrelated legal actions against different companies with Wolf River’s legitimate business operations.
Company executives documented specific business losses directly tied to the false information. In early March 2025, three customers canceled contracts worth over $360,000 after discovering the fabricated legal troubles through Google searches. A non-profit organization also terminated $174,000 in solar and lighting projects, specifically citing “several lawsuits in the last year” with the “Attorney General’s Office” as the reason.
The problem was compounded by Google’s autocomplete suggestions, which prompted users searching for “Wolf River Electric” to add terms like “lawsuit,” “lawsuit Minnesota settlement,” and “lawsuit update Minnesota.” These suggestions appeared despite no actual lawsuit existing, essentially creating a self-reinforcing cycle of false information.
Vladimir Marchenko, Wolf River’s chief executive, reported that competitors began referencing the fabricated claims during consultations with potential clients. The company has claimed losses of $25 million in sales during 2024 and is seeking damages exceeding $110 million.
The case represents one of at least six AI defamation lawsuits filed in the United States over the past two years and poses distinct legal challenges. Unlike traditional defamation cases that focus on human intent, AI systems generate text through statistical prediction rather than intentional decision-making, creating complications for establishing legal fault.
Eugene Volokh, a First Amendment scholar at UCLA, highlighted the central question: “The question is who is responsible for that?” This legal uncertainty has prompted increased attention to AI defamation issues, with Volokh dedicating an entire issue of his Journal of Free Speech Law to the topic in 2023.
Google acknowledged the error in a statement, noting that “with any new technology, mistakes can happen” and claiming the company “acted quickly to fix it” after learning about the problem. However, court documents indicate that as recently as November 2025 — eight months after the lawsuit was filed — searches still produced results claiming Wolf River faced legal action from Minnesota’s attorney general.
Legal experts consider Wolf River’s case particularly strong because the company has documented specific financial losses directly tied to Google’s false claims. The company also benefits from not being categorized as a public figure, meaning it must prove only negligence rather than the higher “actual malice” standard required for public figures in defamation cases.
The Wolf River lawsuit follows other recent AI defamation cases, including conservative activist Robby Starbuck’s settlement with Meta in August 2025 after its Llama chatbot falsely claimed he participated in the January 6 Capitol riot. Starbuck subsequently filed a separate $15 million lawsuit against Google in October 2025.
The case raises broader concerns for publishers and marketers about AI systems misrepresenting content and potentially reducing website traffic. Research from Ahrefs found that Google’s AI Overviews reduced organic clicks by 34.5% for top-ranking websites between March 2024 and March 2025.
Wolf River’s complaint includes five counts: defamation, defamation per se, defamation by implication, violation of the Minnesota Deceptive Trade Practices Act, and declaratory relief. Originally filed in Ramsey County District Court, the case is currently in federal court pending jurisdictional determination.
The lawsuit’s outcome could establish important precedents about technology companies’ liability for AI-generated content, particularly when systems continue distributing false information after being notified of errors.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
13 Comments
This is an alarming example of the potential for AI to cause serious harm through the spread of false information. I hope the lawsuit leads to more robust regulations and oversight to prevent similar incidents in the future.
Absolutely. AI systems must be developed with strong ethical principles and rigorous testing to mitigate the risk of generating and disseminating misinformation that can devastate businesses and communities.
Wow, this is a shocking case of AI-driven disinformation. False claims about a lawsuit can be incredibly damaging, even if later retracted. I hope Wolf River is able to restore their reputation and that this leads to stronger regulation of AI systems.
Fabricating legal claims and publishing them as fact is a blatant abuse of AI technology. This incident highlights the urgent need for robust safeguards and accountability measures to prevent such harmful misinformation in the future.
Absolutely. AI systems must be developed and deployed with rigorous ethical principles and thorough testing to mitigate the risk of generating and disseminating false information that can devastate businesses and communities.
Fabricating legal claims and publishing them as fact – that’s an egregious abuse of AI technology. No wonder Wolf River’s business suffered. This lawsuit against Google is a necessary step to hold the company accountable and prevent future incidents.
This is a cautionary tale about the risks of AI-generated content. While the technology holds great promise, cases like this demonstrate the critical need for robust safeguards and oversight. I hope Wolf River prevails in their lawsuit.
Agreed. Responsible development of AI systems that can reliably distinguish fact from fiction is essential to prevent further damage to businesses and public trust.
While AI can be a powerful tool, cases like this show the urgent need for better safeguards and accountability. I hope the solar company is able to recoup its losses and that this leads to reforms in how AI systems handle sensitive information.
Fabricated legal claims from an AI system – that’s a new low. No wonder Wolf River’s business suffered after this disinformation was published. Suing Google is the right move, but it’s sad that they had to go through this in the first place.
These kinds of AI errors can have devastating real-world consequences. Hopefully the courts will hold Google accountable and set a precedent for more rigorous AI oversight and liability.
This is a concerning case of AI-generated misinformation harming a legitimate solar business. False claims can be extremely damaging, even if later retracted. I hope Wolf River is able to recover their reputation and win this lawsuit against Google.
Agreed, AI systems need much stronger safeguards to prevent the spread of false information that can hurt real companies and consumers. Responsible development of these technologies is crucial.