AI/ML Palo Alto Networks and Koi Security sued over alleged AI hallucinations in security report July 6, 2026 Share By SC Staff (Adobe Stock) As outlined in SDx Central, Palo Alto Networks and its recent acquisition, Koi Security, are facing a lawsuit alleging that AI hallucinations were used in a security report. This report is alleged to have falsely accused a company of Chinese cyber-espionage and potentially inflated the value of Koi's acquisition. MeetingTV, a videoconferencing provider, has filed a lawsuit contesting a Koi Security blog post that accused its domain and Zoomcorder service of being fronts for a China-linked threat actor. MeetingTV claims the blog was published during acquisition negotiations to showcase Koi's AI platform, Wings, and inflate its valuation. The suit alleges Koi published "unverified AI-generated conclusions" without adequate human oversight, despite the known risks of AI "hallucinations" and false positives in cybersecurity. MeetingTV disputes the existence of a key piece of malware mentioned in the report and claims the AI-generated accusations extended to its Zoomcorder product. The lawsuit includes an email from MeetingTV's CEO to Palo Alto Networks' CEO requesting the removal of the "false report" and the delisting of MeetingTV's domains, which had been flagged as malicious by multiple security firms following Koi's report. The original Koi report has since been updated to remove mentions of MeetingTV. Source: SDx Central An In-Depth Guide to AI Get essential knowledge and practical strategies to use AI to better your security program. Learn More SC Staff Related AI benefits/risks In the AI era, we still need humans to do the remediation work Harikrishnan Mulackal July 6, 2026 Everything has sped up, but that's why effective defenses still rely on good people. Vulnerability Management The context gap: Building trusted agents in the age of AI-accelerated exploitation Paul Wagenseil July 2, 2026 AI agents embedded in the SDLC need context, governance, and auditability to operate safely. Ransomware 1st ‘agentic ransomware’ JADEPUFFER invades database at machine speed Laura French July 2, 2026 The LLM fixed a failed login attempt within 31 seconds, demonstrating real-time adaptability. Get daily email updates SC Media's daily must-read of the most current and pressing daily news Business Email By clicking the Subscribe button below, you agree to SC Media Terms of Use and Privacy Policy . Subscribe You can skip this ad in 5 seconds