A U.S. legal technology company, Legion LegalTech Corp, has sued the federal government challenging a directive that halted foreign access to advanced AI models from Anthropic. The company claims the order, issued by the Commerce Department, is unlawful and has disrupted its business operations.
The lawsuit highlights a growing tension between U.S. national security concerns regarding advanced AI technology and the operational needs of businesses that rely on these tools, potentially impacting international collaboration and innovation in the AI sector.
A U.S. legal technology company, Legion LegalTech Corp, has filed a lawsuit against the federal government, challenging a directive issued by the Trump administration that led to AI firm Anthropic halting access to its advanced Fable 5 and Mythos 5 models for users worldwide. The lawsuit, filed in Washington, D.C. federal court, states that the June 12 order from the U.S. Commerce Department’s Bureau of Industry and Security unlawfully required Anthropic to disable these models for "any foreign national." Anthropic subsequently turned off access for all customers to ensure compliance.
Legion LegalTech Corp, based in San Jose, California, asserts that it relies on Anthropic's tools for its software platform, and the government's action immediately cut off access for its Canada-based software development team, disrupting its business. The company develops drafting and case-management tools for attorneys.
The lawsuit argues that the harm to Legion is "immediate, irreparable, and existential," noting that "the pace of frontier AI advancement is blistering, and competitive ground lost during a suspension cannot be regained after the fact." The Commerce Department and White House have not yet responded to requests for comment. Anthropic, which is not a party to the litigation, referred to a prior statement expressing gratitude to the administration for their partnership in resolving the matter.
Legion is asking a U.S. judge to vacate and set aside the administration’s directive and is also seeking a preliminary order to prevent its enforcement. This legal action comes as Anthropic is involved in separate legal battles with the U.S. government in federal courts in Washington and California, stemming from the government's attempt to place the company on a supply-chain blacklist.