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Media's AI Pivot
7SEP

Judge probes $1.5bn Anthropic class deal

2 min read
12:32UTC

Judge Araceli Martínez-Olguín took the $1.5bn Bartz class settlement under submission with a 92.77% claims rate, then ordered fresh briefing on late opt-outs before approving anything.

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Key takeaway

Final approval, fees and late opt-outs remain for the court to decide; the class fund is not a future licensing tariff.

At the 14 May 2026 fairness hearing in Bartz v Anthropic, Judge Araceli Martínez-Olguín took the $1.5bn class settlement under submission with a claims rate of 92.77%, covering 447,576 of 482,460 works⁠1. On around 18 May the judge ordered supplemental briefing, due 21 May, on whether unexcused late opt-outs should be honoured. The fee petition stands at $187.5m, and final approval has not been entered.

Bartz v Anthropic concerns claims over books copied from pirate libraries, heard in the Northern District of California. A fairness hearing is the stage at which a judge decides whether a proposed class settlement is fair to the people it binds. "Taking it under submission" means the judge has reserved judgement rather than approving on the day. The late-opt-out question matters because every author who exits the class keeps the right to sue Anthropic separately, which changes both the defendant's exposure and the value of the deal on the table.

News Corp chief executive Robert Thomson referred to the same class fund in his May earnings call. HarperCollins is a class member and its allocation is undisclosed. The court is reviewing this settlement; its decision will not set a mandatory tariff for other publishers' future licences.

Deep Analysis

In plain English

The Bartz settlement concerns books Anthropic copied from pirate libraries. The proposed $1.5bn fund covers eligible book copyright owners. Lawyers have requested $187.5m in fees. The judge reserved her decision on 14 May and sought further briefing on late opt-outs. Anthropic had already paid $300m into the fund, but distributions to rightsholders had not begun. Final approval and the allocation process still matter for when people receive money.

What could happen next?
  • Precedent

    A final-approved $1.5bn Bartz settlement establishes a per-work floor of approximately $2,935 net that other AI labs will cite as the class-action alternative in bilateral licensing negotiations.

    Short term · Assessed
  • Risk

    If the judge's late-opt-out inquiry leads to a revised class definition, the settlement could be restructured or rejected, resetting the pricing benchmark downward or extending litigation uncertainty.

    Short term · Assessed
  • Consequence

    The $187.5m fee petition signals that plaintiff litigation capital is now treating AI copyright class actions as viable commercial investments, accelerating similar actions against other AI labs.

    Medium term · Assessed
  • Meaning

    The 92.77% claims rate, 447,576 of 482,460 works, reflects organised rights-holder mobilisation beyond what passive class action typically achieves, driven by the Authors Guild and comparable organisations.

    Immediate · Reported
First Reported In

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US Securities and Exchange Commission· 27 May 2026
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.