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Judge Alsup calls ClaimsHero opt-out push 'a fraud of immense proportions'

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Judge Alsup calls ClaimsHero opt-out push 'a fraud of immense proportions'

3 Key Points

  1. What happened

    Judge William Alsup called ClaimsHero's ads urging authors to reject the roughly $3,000-per-work Anthropic settlement 'a fraud of immense proportions' and ordered the firm to disclose within 48 hours that it has no federal or state court experience.

  2. Why it matters

    Alsup's order requires the firm to change its website and sets a Nov. 25 evidentiary hearing where authors who signed up will be questioned, suggesting the court is treating the opt-out campaign as a threat to the settlement's integrity.

  3. What to watch

    An evidentiary hearing is set for Nov. 25, when authors who signed up through ClaimsHero will be questioned.

WHO IT HITSAuthors covered by the Anthropic settlement face a choice between the court-approved per-work payout and ClaimsHero's promised larger recovery, while class-action administrators and judges may need to police similar third-party opt-out campaigns in future settlements.

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Context & Analysis

The hearing in San Francisco on Thursday marked an unusual intervention by Judge Alsup into the marketing tactics surrounding a class-action settlement. According to Bloomberg Law, Alsup told ClaimsHero's counsel Devin Freedman of Freedman Normand Friedland LLP that he was 'disturbed' by the 'blatant attempt by your client to trick people into opting out' for a 'quick buck', and he called the marketing 'propaganda'. When asked about the firm's federal and state court experience, the judge spelled the answer out himself: 'Z-E-R-O'.

The settlement at issue covers nearly 500,000 books, and the ads run by ClaimsHero have urged authors to reject the roughly $3,000-per-work payout in favor of a separate suit promising up to $150,000 per book. Alsup's order gives the firm 48 hours to revise its website with an explicit acknowledgment of its lack of court experience, and the Nov. 25 evidentiary hearing will bring signed-up authors before the court for questioning. The case, Bartz v. Anthropic, is thus moving beyond the usual capability-and-capital beat into the plumbing of settlement administration, where claim aggregators tend to shadow large class actions.

FAQ
What does ClaimsHero tell authors to do?
Its online ads urge authors to reject the court-approved deal of roughly $3,000 per included work and opt out to 'fight for up to $150,000 per book' through a separate lawsuit.
How many books does the Anthropic settlement cover?
The settlement covers nearly 500,000 books.
What did Judge Alsup order ClaimsHero to do?
He ordered the firm to change its website within 48 hours, including an explicit acknowledgment that it has no experience litigating in federal or state court.
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