The biggest entertainment lawsuits of 2025 and 2026 fall into four clusters: artificial intelligence copyright fights that have already produced a $1.5 billion settlement, sexual misconduct claims against powerful figures including Tyler Perry, Sean Combs, and Marilyn Manson, defamation battles involving Tyra Banks and Fox News, and corporate deal challenges at WWE and Paramount. Below is where each stands and what the stakes are.
AI Copyright Is the Defining Fight
No corner of entertainment law is moving faster. The suits turn on whether companies can train models on copyrighted work, whether the outputs infringe, and who gets paid when a recording is licensed to a music generator.
Bartz v. Anthropic: $1.5 Billion for Pirated Training Data
Anthropic agreed to pay $1.5 billion plus interest to settle a class action alleging it trained its Claude model on books pulled from the Library Genesis and Pirate Library Mirror databases. The case, filed by authors Andrea Bartz, Kirk Wallace Johnson, and Charles Graeber in the Northern District of California, covers an estimated 500,000 works at roughly $3,000 each; if the final count exceeds 500,000, Anthropic owes an additional $3,000 per title.1Susman Godfrey LLP. Susman Godfrey Secures $1.5 Billion Settlement in Landmark AI Piracy Case
The deal also forces Anthropic to destroy the pirated files and derivatives. It does not license future training, and it does not release claims over infringing outputs.2Copyright Alliance. Participating in the Bartz v. Anthropic Settlement Judge William Alsup granted preliminary approval in September 2025, making it the largest publicly reported copyright recovery on record.1Susman Godfrey LLP. Susman Godfrey Secures $1.5 Billion Settlement in Landmark AI Piracy Case
Disney and Universal v. Midjourney
In June 2025, Disney, Universal, Lucasfilm, Marvel, DreamWorks Animation, and Twentieth Century Fox sued image generator Midjourney in the Central District of California, calling it a “bottomless pit of plagiarism” that produces recognizable depictions of characters including Darth Vader, Yoda, Elsa, Spider-Man, Iron Man, and the Minions. The 110-page complaint seeks an injunction barring the platform from operating without copyright protections.3BBC. Disney and Universal Sue Midjourney Over AI Image Generation4Georgetown Law Tech Institute. Disney, NBC Universal, and DreamWorks File Major IP Lawsuit Against AI Image Generator Midjourney The case was consolidated with a separate Warner Bros. action in November 2025, adding DC Comics, Hanna-Barbera, Turner Entertainment, and Cartoon Network. It is now in discovery and has been referred to private mediation.5CourtListener. Disney Enterprises Inc. v. Midjourney Inc.
Musicians Union Takes On the Major Labels
On June 5, 2026, the American Federation of Musicians sued Universal Music Group and Warner Music Group in the Southern District of New York. The union says the labels licensed sound recordings to AI music companies Suno and Udio without paying the session musicians on those recordings, triggering “new use” provisions in its collective bargaining agreements that require payment whenever recorded work is put to a new commercial purpose.6Music Business Worldwide. Musicians Union Sues UMG and Warner Music Alleging Member Recordings Were Licensed to Suno and Udio Without Compensation or Credit The AFM is also asking a court to force the labels to disclose which recordings went into the training sets.7The Hollywood Reporter. Musicians Union Lawsuit Over AI Song Generator Settlements
Blake Lively v. Justin Baldoni Is Over
The most closely watched individual case of the cycle has resolved. Blake Lively sued Justin Baldoni, his production company Wayfarer Studios, and associated parties in the Southern District of New York on December 31, 2024, alleging sexual harassment, retaliation, breach of contract, defamation, and civil conspiracy during production of It Ends With Us. Her second amended complaint, filed in July 2025, pressed 13 claims.8U.S. District Court, Southern District of New York. Opinion and Order, 24-cv-10049
In April 2026, Judge Lewis J. Liman dismissed 10 of the 13 claims and let three survive: retaliation under California law against the production company and Wayfarer Studios, aiding and abetting retaliation against The Agency Group PR, and breach of a “Contract Rider Agreement” containing workplace protections Lively negotiated before returning to the set.8U.S. District Court, Southern District of New York. Opinion and Order, 24-cv-10049 Baldoni’s defamation countersuit was dismissed in June 2025, with the court finding his team failed to adequately allege wrongful extortion.9BBC. Blake Lively and Justin Baldoni Settle Lawsuit
The remaining claims settled in May 2026, days before a trial scheduled for May 18. No money changed hands. In June 2026, Judge Liman granted Lively’s motion for legal fees tied to defending against the dismissed defamation suit, finding her case met the criteria of a California law meant to prevent defamation suits from being used to intimidate people who make harassment complaints.10The New York Times. Blake Lively Legal Fees Ruling in Justin Baldoni Settlement
Misconduct Suits Against Powerful Figures
Derek Dixon v. Tyler Perry
Actor Derek Dixon, who appeared on BET’s The Oval, filed a $260 million civil suit against Tyler Perry in Los Angeles County Superior Court in June 2025. Dixon alleges Perry sent sexually suggestive texts, climbed into bed with him while he was staying at Perry’s guest quarters in January 2020, pinned him against a wall in a trailer on set and groped him, and in a June 2021 incident at Perry’s Atlanta home demanded he strip to his underwear under the pretense of a weigh-in before pulling down his underwear and grabbing his buttocks.11ABC News. Actor Accused Tyler Perry of Sexual Assault Speaks for First Time Dixon also claims Perry allegedly threatened that his character would be killed off if he did not reciprocate advances. Perry’s attorney, Matthew Boyd, has denied the allegations, calling the suit a “scam” and a “shakedown.” The case remains active.12BBC. Tyler Perry Sued for $260 Million Over Sexual Assault Claims
Dawn Richard v. Sean “Diddy” Combs
Danity Kane singer Dawn Richard sued Sean Combs in 2024, alleging abuse, sexual misconduct, and inhumane working conditions during her time with his labels and projects from 2004 to 2012. Her 18 claims included assault, battery, employment discrimination, intentional infliction of emotional distress, and copyright infringement for unpaid creative contributions.13USA Today. Dawn Richard Danity Kane Diddy Lawsuit Dismissed
In June 2026, U.S. District Judge Katherine Polk Failla dismissed 17 of the 18 claims with prejudice as barred by expired statutes of limitations, noting the conduct “ceased in 2011 or 2012” and Richard did not allege further wrongful acts in the intervening years, though the allegations “if true, are execrable.”14People. Why Did a Judge Dismiss Dawn Richard’s Lawsuit Against Sean Diddy Combs One claim, under New York’s Victims of Gender-Motivated Violence Act, was dismissed without prejudice, and Richard’s legal team has announced plans to refile it in state court.13USA Today. Dawn Richard Danity Kane Diddy Lawsuit Dismissed
Ashley Walters v. Marilyn Manson
Former personal assistant Ashley Walters originally sued Marilyn Manson, legally Brian Warner, in 2021, alleging sexual harassment, sexual battery, abuse, and wrongful termination during her 2010–2011 employment. Her complaint says Warner pushed her onto a bed, pinned her arms, tried to kiss her, then bit her ear while forcing her hand into his underwear. The case was dismissed in December 2025 as time-barred and revived in January 2026 after California’s Assembly Bill 250 opened a two-year window for previously expired sexual assault claims.15The Guardian. Marilyn Manson Sexual Assault Case Reopened
In June 2026, Judge Steve Cochran rejected Manson’s motion to dismiss the third amended complaint, saying: “With allegations like this, you think I’m going to be quibbling with somebody about whether it’s sexual assault or not at the pleading stage? I’d have trouble sleeping.” A case management conference is set for August 2026.16Loudwire. Judge Rejects Marilyn Manson Request to Dismiss Former Assistant Sexual Assault Lawsuit Manson’s attorney, Howard King, says the allegations do not constitute sexual assault under the penal code and denies all claims.17Deadline. Marilyn Manson Sexual Assault Case Revived
Defamation Fights on Screen and On Air
Tyra Banks v. Netflix
Tyra Banks sued Netflix in June 2026 over the docuseries Reality Check: Inside America’s Next Top Model, saying filmmakers condensed her three-and-a-half-hour interview into 16 minutes of selectively edited footage to build a “false and defamatory narrative.” Banks claims the series created the impression she knowingly allowed contestant Shandi Sullivan to be sexually assaulted and exploited that trauma for ratings, cutting footage in which Banks acknowledged Sullivan’s story. The suit also says the series falsely depicted her as ignoring co-star Miss J. Alexander after his 2022 stroke, omitting evidence of her outreach.18People. Tyra Banks Files Lawsuit Against Netflix She is seeking a jury trial for lost business opportunities, lost income, and mental anguish, plus an injunction against use of her image on the docuseries’ soundtrack album.19CBC. Tyra Banks Sues Netflix Alleging Defamation
Smartmatic v. Fox News
Fox News paid $787.5 million in April 2023 to settle Dominion Voting Systems’ defamation suit,20The Guardian. Dominion Wins but the Public Loses: Fox Settlement Avoids Paying the Highest Price but it still faces a $2.7 billion defamation suit from Smartmatic over post-2020 election broadcasts the company says destroyed its reputation. As of December 2025, both sides have asked New York State Supreme Court Justice David B. Cohen for summary judgment, and thousands of pages of internal Fox documents filed in court show hosts and executives privately doubted the fraud claims they aired.21The New York Times. Smartmatic Fox News Defamation Case The judge rejected Fox’s request to pause the case pending federal bribery charges against Smartmatic related to operations in the Philippines.22NPR. Fox News Smartmatic Lawsuit Election Claims Trial
Corporate Deal and Platform Disputes
WWE-UFC Merger Shareholder Suit
WWE stockholders challenged the $21.4 billion merger between WWE and Endeavor, UFC’s parent, in Delaware’s Chancery Court, saying Vince McMahon steered the deal to benefit himself. According to the shareholders, McMahon pursued Endeavor specifically because CEO Ari Emanuel would let him keep control, rejecting potentially richer offers from suitors who might have forced him out amid federal investigations into sexual misconduct and hush money payments.23Front Office Sports. Vince McMahon WWE Shareholder Lawsuit
The court sanctioned McMahon and WWE leaders for intentionally destroying Signal text messages, creating a judicial presumption that key allegations are true, including that McMahon decided to pursue the Endeavor deal before WWE began a formal review and that he collaborated with CEO Nick Khan and their financial adviser to steer negotiations toward Endeavor.24Bloomberg Law. McMahon Sanctions Cloud Trial Over $21 Billion WWE-UFC Merger A four-day trial was scheduled for June 8, 2026, but the parties reached a settlement in principle on June 6. Terms have not been made public.25Delaware Online. Vince McMahon WWE Settle Delaware Lawsuit Over UFC Merger
Paramount-Skydance Merger
Stockholders are also challenging Paramount Global’s $8 billion sale to Skydance Media, alleging controlling shareholder Shari Redstone was unfairly enriched at other investors’ expense. The complaint, filed in Delaware Chancery Court in April 2025, says Redstone “single-handedly” approved the merger, which carries a $400 million termination fee with no fiduciary-out provision, and that the board refused to engage with a superior all-cash offer valued more than $5 billion above the merger price.26Delaware Chancery Court. NYC Employees’ Retirement System v. Byrne, C.A. No. 2025-0126-KSJM In June 2026, a magistrate judge found a “credible basis” to suspect wrongdoing and ordered Paramount to produce internal communications related to the resignations of three special committee members who had reviewed the deal.27Bloomberg. Paramount Told to Disclose Some Records to Investors in Lawsuit
Spotify’s 1,000-Stream Royalty Threshold
Independent musician and attorney Mark Kratter sued Spotify in Connecticut in June 2026, challenging the platform’s 2024 policy requiring a track to reach 1,000 streams before it earns any royalties. Kratter says the threshold, combined with undisclosed filtering criteria and suppression of algorithmic discovery, constitutes unfair and deceptive business practices under Connecticut’s Unfair Trade Practices Act and disproportionately harms small creators.28Billboard. Spotify Lawsuit Royalty Rules Hurt Indie Artists
What’s Shifting the Legal Ground
These cases share a pattern. Old frameworks are being pushed to cover situations their drafters never imagined, and legislatures are starting to catch up. The U.S. Copyright Office concluded in a July 2024 report that existing law is insufficient to address AI-generated digital replicas and recommended new federal legislation, finding that 98 percent of deepfake videos analyzed in 2023 were sexually explicit.29U.S. Copyright Office. Copyright and Artificial Intelligence: Part 1: Digital Replicas Report
In 2025, every state introduced legislation on non-consensual sexual deepfakes and AI-generated child sexual abuse material, and the federal Take it Down Act passed that year, requiring online platforms to remove AI-generated non-consensual sexual content.30MultiState. How AI-Generated Content Laws Are Changing Across the Country California’s AB 250, which revived Ashley Walters’s case against Marilyn Manson, is doing the same work on the misconduct side: reopening a window for claims that would otherwise have expired. Whether the courts or the legislatures move faster will shape which of the fights above become templates and which stay one-offs.