I am ambivalent about this overall, but few things are clear. Someone getting sued does not automatically mean they are wrong and whoever is suing is right. We don't know the rules, and hence the lawsuit. I see it being used as an evidence of wrongdoing, and seems plainly wrong. Every thing that becomes big ends up being sued (including the artists with allegations that they copied someone's work). Tells us nothing.
(I think this part is clear) Reproducing content verbatim without permission, and for profit, is plain old plagiarism, whether it's done via AI or human. In some cases, with proper citations, it is allowed, but otherwise it's a no. For summarized content, with or without credit and citations, was always allowed, but never done at this scale, so this "social contract" might need to change.