They're suing Internet Archive because IA scanned a bunch of copyrighted books to put online for free (e: without even attempting to get permission to do so) then refused to take them down when they got a C&D lol. IA is putting the whole project at risk so they can do literal copyright infringement with no consequences.
It's not lambasting to communicate what happened. IA got a C&D, refused to comply, and got sued for copyright infringement. The courts sided with the publishers when IA tried to claim it was fair use (technologists seem to have a pattern of stretching the definition of fair use). They've put their entire project at risk because they've repeatedly ignored the law here. That's just what happened.
The same megacorps are suing Internet Archive for their collection of 78rpm records. These guys would rather see art orphaned and die.