This is disbarment worthy
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Seriously. Only 5k? After doubling down on the lie? They should never work in law again.
If it was intentional and they knew it was bogus, sure. But without looking at the details, I'm guessing they asked ChatGPT for case references and didn't fact check their results. Negligent, yes, but apparently not to the level to require disbarment.
"Oh, we're so sorry! We just couldn't imagine a tool created to make shit up would actually make shit up instead of quoting verbatim ]judicial precedent/case law/whatever jargon]! Also we accidentally lied and unintentionally refused to perform our actual roles as required by, y'know, normal procedure and/or law like a real law firm with real lawyers in it. Whoopsy! Totally cool, though, right?"