Trump administration faces lawsuit over AI restrictions

25.06.2026 2 minutes Author: Newsman

U.S. legal tech company Legion LegalTech has filed a lawsuit against the federal government, arguing that a directive issued by President Donald Trump’s administration forced Anthropic to suspend global access to two of its most advanced AI models.

The lawsuit was filed in federal court in Washington, D.C. Legion LegalTech argues that the U.S. Department of Commerce’s Bureau of Industry and Security unlawfully ordered Anthropic to disable its Fable 5 and Mythos 5 models for all foreign nationals. To comply with the directive, Anthropic immediately suspended access to both models for all customers.

The San Jose-based company says it relies on Anthropic’s technology to power its legal document drafting and case management platform. As a result of the restrictions, its software development team in Canada instantly lost access to the AI tools, disrupting the company’s operations.

According to the complaint, the harm suffered by Legion is “immediate, irreparable, and existential.” The company argues that because advanced AI is evolving so rapidly, any competitive advantage lost during the suspension cannot be recovered.

Neither the U.S. Department of Commerce nor the White House has commented on the lawsuit. Anthropic is not a party to the case.

The company referred to an earlier statement in which it thanked the administration for its cooperation and said it hopes the issue can be resolved as quickly as possible.

Legion LegalTech is asking the court to overturn the directive that led to the shutdown of Anthropic’s AI models. It also plans to seek a preliminary injunction preventing the administration from enforcing the order while the case is being heard.

Anthropic is also involved in separate legal battles with the U.S. government in federal courts in Washington and California. The company sued the Trump administration after being placed on a government blacklist for refusing to allow its AI models to be used for domestic surveillance or fully autonomous weapons.

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