Anthropic AI restrictions spark lawsuit against Trump administration

A US legal technology company on Tuesday sued the federal government, challenging a directive by President Donald Trump’s administration that resulted in the artificial intelligence firm Anthropic halting access to two of its most advanced models for users worldwide.
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Legal technology company Legion LegalTech has sued the US government over a directive that led Anthropic to disable access to its advanced Fable 5 and Mythos 5 AI models for foreign nationals.
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Legion says the move disrupted its operations by cutting off access for members of its Canada-based software development team who rely on Anthropic's models.
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The company argues the restrictions are unlawful and has asked a federal court to block enforcement of the directive.
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The lawsuit comes amid a broader dispute between Anthropic and the US government, including separate litigation over the company's refusal to allow its AI models to be used for domestic surveillance or fully autonomous weapons.
Legion LegalTech Corp filed its lawsuit in Washington, D.C., federal court, saying a June 12 order by the US Commerce Department’s Bureau of Industry and Security unlawfully required Anthropic to disable its Fable 5 and Mythos 5 models for “any foreign national.” Anthropic turned off access for all customers the same day to ensure compliance.
San Jose, California-based Legion says it depends on Anthropic’s tools for its software platform and that the US government’s action immediately cut off access for members of its Canada-based software development team and disrupted its business. The company builds drafting and case-management tools for attorneys.
"The harm to Legion is immediate, irreparable, and existential," the lawsuit said. "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 did not immediately respond to requests for comment. Anthropic is not a party to the litigation.
Anthropic on Tuesday referred to a prior statement that said it was “grateful to the administration for their ongoing partnership in working to get this matter resolved as quickly as possible.”
Legion asked a US judge to vacate and set aside the administration’s directive targeting Anthropic. The company also said it would ask for a preliminary order to bar the administration from enforcing the directive.
Anthropic and the United States are locked in legal battles in Washington and California federal courts. Anthropic sued the Trump administration after the government moved to place the company on a supply-chain blacklist over its refusal to allow the military to use its AI models for domestic surveillance or fully autonomous weapons.
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