US law firm accuses UK AI software firm of unwanted contract renewal when it tried to leave

The Register ·

A California law firm, DK Law, has accused UK-based telecoms and AI software provider ConnexAI of selling it software that failed to work as promised, and of unlawfully renewing its contract after the firm tried to cancel. ConnexAI, registered as Connex One Limited in the UK and Connex One Inc in the US, has rejected the allegations as frivolous. The dispute spans two ongoing court cases and highlights the risks businesses face when AI vendors' marketing claims outpace their products' actual performance.

DK Law's April complaint in a California federal court alleges ConnexAI's telephone system frequently went down, misrouted calls, and left WhatsApp integration effectively unusable, despite promises of round-the-clock AI-powered customer engagement via its Athena software. The firm also claims ConnexAI's speech recognition and transcription tools, marketed as never missing a word and capable of handling English and Spanish, repeatedly failed to produce accurate or complete transcripts. This followed a March 2026 New York lawsuit in which ConnexAI accused DK Law of breaching its contract by not paying invoices, which ConnexAI says prompted the counter-allegations; both cases remain active.

In short

  • DK Law accuses ConnexAI of AI software that didn't work as advertised
  • Law firm also claims contract was renewed against its wishes
  • ConnexAI rejects claims, calling them frivolous; both lawsuits continue

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

DK Law’s case is that it paid for a system whose core advertised functions repeatedly failed, disrupting calls and producing unreliable transcripts, and that it should not be bound by a renewal after trying to cancel. If those allegations are supported, holding the supplier to its promises and requiring clear, fair cancellation terms would protect customers in a market where product claims can be hard to assess in advance.

The case against

ConnexAI’s strongest case is that the allegations are disputed and arose after it sued over unpaid invoices, so the contract and the parties’ records may show a straightforward payment dispute rather than a defective product or improper renewal. A supplier is entitled to enforce agreed payment and renewal terms, and reported performance problems alone do not establish that the software failed its contractual obligations.

Explained simply

DK Law is a California law firm, and ConnexAI is a UK-based company that sells telephone and AI software to businesses. Its Athena product is designed to help companies handle customer calls and messages, including by recognising and transcribing speech.

The dispute centres on what ConnexAI’s software was meant to do and what the firms’ contract required. Their cases are being heard in US courts, where claims about the software’s performance and the contract are contested.

The case matters to businesses weighing AI tools against vendors’ promises. It also shows how disagreements over a product’s reliability can become entangled with disputes over payment and contract terms.

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