I already talked about that lawsuit here (with receipts) but the long and short of it is, it's flimsy. There's blatant lies, exactly half of their examples omit the lengths they went to for the output they allegedly got or any screenshots as evidence it happened at all, and none of the output they allegedly got was behind a paywall.
Also, using their prompts word for word doesn't give the output they claim they got. Maybe it did in the past, idk, but I've never been able to do it for any copyrighted text personally, and they've shown that they're committed to not letting that stuff happen.