Anthropic’s accrued legal expenses rose 69% to $1.309 billion as of June 30, 2026, from $775 million at the end of 2025, according to the artificial intelligence company’s registration statement filed with the US Securities and Exchange Commission (SEC).
The company’s consolidated financial statements show accrued legal expenses of $2 million as of December 31, 2024, which increased sharply to $775 million by December 2025 before rising further in the first half of 2026. The latest disclosure comes as Anthropic faces multiple legal challenges involving copyright, the use of data to train AI models and its dealings with government authorities.The filing separately identifies $1.2 billion in accounts payable, accrued expenses and other current liabilities associated with the settlement of a copyright class action brought by authors. Anthropic agreed to pay $1.5 billion to settle the Bartz litigation, which alleged that the company had unlawfully copied copyrighted books in building and training its AI models.Anthropic paid $300 million towards the settlement during 2025 and recorded $750 million in current liabilities and $450 million in non-current liabilities as of December 31, 2025. By June 30, 2026, the remaining $1.2 billion was reflected in current liabilities, the filing said. The settlement was approved by the district court in July 2026.The filing does not explicitly reconcile the $1.2 billion settlement liability with the separate $1.309 billion accrued legal expenses line. The two figures therefore should not be treated as separate amounts or added together.Copyright disputes remain a key exposureBeyond the Bartz settlement, Anthropic disclosed other legal proceedings involving allegations that it used copyrighted material to train or operate its AI models.These include litigation brought by music publishers over the alleged unauthorised copying and dissemination of copyrighted song lyrics, as well as other claims by authors and publishers. The company has disputed allegations of wrongdoing and said it believes it has meritorious defences.Anthropic has also warned investors that legal proceedings could adversely affect its business through defence and settlement costs, the diversion of management resources and other consequences. Its registration statement identifies legal proceedings and compliance with evolving laws and regulations as costs that could weigh on its operations and financial performance.Legal liabilities and spending are distinctThe $1.309 billion accrued legal expenses figure represents a balance-sheet liability at June 30, 2026, rather than the amount spent on legal fees during the first six months of the year. The filing does not provide a case-by-case breakdown of that balance.Separately, Anthropic recorded the $1.5 billion Bartz settlement as an operating expense in 2025. Its financial statements reported total operating expenses of $12.645 billion for that year, including the settlement expense.The disclosures highlight the financial exposure associated with litigation as Anthropic seeks to expand its AI business, while the company continues to contest other claims involving its models and the material used to develop them.Law firms advising on the offeringAnthropic has appointed Wilson Sonsini Goodrich & Rosati PC, based in Palo Alto, California, as its counsel in connection with the offering. The firm will also pass upon the validity of the Class A common stock being offered under the prospectus. Certain members and associated persons of the firm, including investment partnerships comprising its members, directly or indirectly own less than 0.01% of Anthropic’s outstanding capital stock, according to the filing.Freshfields US LLP, based in Redwood City, California, will advise the underwriters on certain legal matters relating to the offering.Orrick, Herrington & Sutcliffe LLP acted as counsel to Anthropic on certain executive compensation and equity matters. The Long-Term Benefit Trust’s principal legal counsel, John Morley, and Cleary Gottlieb Steen & Hamilton LLP advised the trust on certain governance matters disclosed in the prospectus. Cravath, Swaine & Moore LLP advised Anthropic’s co-founders on certain governance matters.
