U.S. District Judge Araceli Martinez‑Olguin has put a hold on what could become the nation’s largest copyright settlement, targeting AI startup Anthropic’s $1.5 billion deal over alleged book piracy. Plaintiffs argue the agreement rushes to lock in compensation while letting attorneys claim a staggering $320 million in fees. The judge asked class members to explain why many are objecting or opting out.

Authors such as Pierce Story contend that a typical payout of roughly $3,000 is dwarfed by counsel’s demand, which they estimate translates to $10,000‑$12,000 per hour of work. They propose trimming legal fees to $70 million, a cut that would boost individual awards by about 25 percent. Several writers also demand that Anthropic destroy all copies of the pirated works before the settlement proceeds.

Judge Martinez‑Olguin set a May 21 deadline for authors to respond and for Anthropic to file a brief defending late opt‑outs. Earlier, retired Judge William Alsup flagged the fee structure as potentially excessive and suggested an independent probe, a recommendation that the incoming judge says was not fully disclosed. The court’s scrutiny could force a renegotiated payout formula before any money reaches creators.