Judge delays Anthropic's $1.5B settlement as authors blast 'pittance' payouts

US District Judge Araceli Martinez-Olguin declined to finalize Anthropic’s $1.5 billion copyright settlement—the largest in US history—after several authors and class members raised objections. The settlement stems from allegations that Anthropic used pirated books to train its AI models without compensation. Objectors argue that the proposed $320 million in legal fees are excessive, with lawyers potentially earning $10,000–$12,000 per hour while each author receives only about $3,000. Pierce Story, an objector and author, called the payouts a “pittance” and accused the legal team of settling too quickly to maximize their own compensation. The judge has asked for further briefing on the concerns, and some class members have opted out to file new lawsuits against Anthropic.

Objectors also argue that the fee structure is unfair because it ties lawyer compensation to the total settlement fund ($1.5 billion) rather than to the actual number of claimants. With over 92% of 480,000 eligible works claimed, lawyers could walk away with a third of a billion dollars. Story suggested that a $70 million fee would still be generous and could increase individual author payouts by 25%. Retired Judge William Alsup, who had initially approved the settlement, also questioned the high fees. The judge’s delay signals that the court is taking the objections seriously, and the settlement may face further scrutiny or require renegotiation.