Anthropic hit with lawsuit over Claude subscriptions as users allege AI limits are far lower than promised

Firstpost
Anthropic faces a class-action lawsuit alleging its premium Claude plans offer significantly less usage than advertised.

Summary

Anthropic is facing a proposed class action lawsuit accusing it of overstating the capabilities of its premium Claude plans. The complaint alleges that subscribers paying up to $200 a month receive significantly less usage than advertised, adding to growing scrutiny over transparency in AI subscription pricing. The lawsuit, filed in a California federal court, accuses the company of exaggerating the benefits of its Max 5x and Max 20x plans and providing customers with far less access than advertised. At the centre of the case is Karl Khan, a Claude user who upgraded to the top-tier Max 20x package for coding work. He alleges that his experience fell well short of the company's promises, prompting him to compare usage across different plans and ultimately take legal action. Anthropic markets its Max 5x and Max 20x subscriptions as offering five and 20 times the usage of the standard Pro package, respectively. The plans cost $100 and $200 a month, while the Pro tier is priced between $17 and $20. According to the lawsuit, however, those claims do not match reality. The complaint argues that the $200 Max 20x plan delivers "just six to eight times the usage of Pro", rather than the twentyfold increase advertised by the company. Likewise, the Max 5x package is alleged to provide "just three-and-a-half times the usage of Pro" instead of the promised five times. One of the key allegations in the complaint concerns the lack of transparency surrounding Claude's rate limits. The filing claims Anthropic's website "is a black box, without any meaningful description of how usage is calculated". The case seeks class action status for anyone who has purchased and used the Max 5x or Max 20x plans since April 2025.

(Source:Firstpost)

Snopes.com

L'Oréal's CeraVe faces 6 class action lawsuits claiming products contain cancer-causing chemical

Benzinga

Amazon's 'Wild Caught' and 'Sustainable' Seafood Labels Are Just Greenwashing, New Lawsuit Claims - Amazo

South China Morning Post

Swift bypass: China completes first Malaysia payment in digital yuan

Spot On South Dakota

North Dakota Beef Commission lawsuit awaits ruling

Et Now

Co-location, dark fibre cases: SEBI agrees to IPO-bound NSE's Rs 1,491 crore settlement

Mint

Trump appeals ruling questioning his $10 billion IRS lawsuit over leaked tax records and settlement

BayToday

Class-action lawsuit over sexual abuse at Metro Vancouver schools settled for $30M

SooToday

Class-action lawsuit over sexual abuse at Metro Vancouver schools settled for $30M

Markets Insider

Bloom Energy (BE) Faces Class Action Lawsuit Over Scandium Supply Disclosure Issues

The Philadelphia Inquirer

West Oak Lane tenants and landlord Odin Properties agreed on rent refunds in class-action lawsuit

Global News

TurboTax owner Intuit facing a class-action lawsuit over "free" advertising

Google News

NY looks to shut down Kalshi, have it pay $36 billion in new lawsuit

CNBC

450,000 defrauded student loan borrowers are eligible for debt forgiveness — here's who qualifies

Wbrz

AG: State of Louisiana agrees to over $1M settlement with Walmart over delivery service

Times of India

Flagstar’s 2021 data breaches affected nearly 2.2 million people; eligible Americans have until August 11 to claim documented losses up to $25,000 from a proposed $31.5 million settlement