A California law firm has accused a UK-based software company of selling AI systems that failed to perform as promised and then illegally renewing its contract after the firm tried to cancel. DK Law, which specializes in personal injury cases, filed a complaint in April alleging that ConnexAI sold it a telephone system and AI software with capabilities "that does not exist or perform as represented." ConnexAI has rejected the claims, calling them frivolous and without merit. The dispute now involves two separate court cases, both ongoing.
According to the California court filing, DK Law alleges the telephone system routinely went down, with calls frequently dropped or left unanswered. Calls were also regularly misrouted, the customer claims. The firm says ConnexAI had promised its Athena software would include sentiment analysis, entity recognition, call transcripts, interaction clustering, training cues, and trend identification, with AI transcription that worked in Spanish. However, DK Law alleges that when it reviewed call recordings, it discovered only a few seconds of conversation were actually captured despite evidence of longer calls. The law firm also claims Spanish language transcription didn't work at all, and English transcripts were inaccurate when compared to recorded conversations. WhatsApp integration, which ConnexAI had promised, was unreliable and essentially unusable, the complaint states. While the vendor had claimed its Automatic Speech Recognition "would never miss a word," DK Law alleges this was false.
The customer says it told ConnexAI in October 2025 that it wouldn't renew the year-long contract when it expired. But ConnexAI continued sending invoices after the contract term ended, demanding payment and "harassing its employees," the complaint alleges. In response, ConnexAI filed its own lawsuit in March 2026 in New York court, claiming DK Law had breached its contract by failing to pay invoices. The vendor argues the contract renewed automatically for another term starting in October 2025. Dan Richardson, ConnexAI's general manager for North America, said in a statement that the company rejects the allegations and noted they were raised only after ConnexAI initiated its own legal proceedings.
DK Law contends that ConnexAI's claim of automatic renewal violates New York State law, which requires vendors to provide written notice of automatic renewal in advance for telecommunications and software contracts. The law firm alleges ConnexAI "never provided the requisite notice." The firm is seeking restitution and damages in California court. Last week, the California court stayed DK Law's case, putting it on hold until the New York claim is settled. DK Law is attempting to have the New York case dismissed and has requested the court hear oral arguments. On September 1, a federal magistrate judge denied the motion to stay the case. The outcome will likely hinge on whether ConnexAI properly notified DK Law of the automatic renewal and whether the software met industry standards as promised. For vendors and customers alike, the case highlights how critical it is to document both product capabilities and contract terms before disputes escalate into multi-jurisdictional litigation.