John Carreyrou and other authors bring new lawsuit against six major AI companies
What Happened
These authors rejected Anthropic's class action settlement, arguing that "LLM companies should not be able to so easily extinguish thousands upon thousands of high-value claims at bargain-basement rates."
Our Take
This stings. Anthropic's the one everyone says is "doing it right" on safety and ethics. And authors are still saying Anthropic's settlement was a lowball.
The lawsuit argument is sharp: LLM companies shouldn't wipe out thousands of claims with a bargain settlement just because the legal risk is high. Essentially—don't hide behind "we trained on public data" when you're making billions off that data.
It's hard to argue with. Anthropic's reputation took a hit here because the bar was higher for them.
What To Do
If your AI product trains on third-party content, budget for extended legal exposure—don't assume early settlements cap your risk.
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