A cybersecurity report intended to map Chinese-linked espionage activity has escalated into a legal dispute spanning Silicon Valley and Israel, after a U.S. startup alleged it was wrongly identified as part of a hostile network due to an artificial intelligence error. In March, U.S. media company MeetingTV filed a lawsuit in federal court in Southern California against cyber firm Koi Security, and its four Israeli founders, Amit Assaraf, Idan Dardikman, Tuval Admoni, and Gal Hachamov. Cybersecurity giant Palo Alto Networks, which acquired Koi in April for hundreds of millions of dollars, was added as a defendant in May 2026. At the center of the lawsuit is the claim that a flawed artificial intelligence system at the cybersecurity company caused the complete destruction of legitimate business activity due to what is known as “AI hallucination.”

Full report : MeetingTV claims a flawed intelligence classification by AI tools from Palo Alto Networks and Koi Security led to global blocking of its services.