Here's an excerpt from the associated "Memorandum of Law in Support of Plaintiffs' Motion for Partial Judgment on the Pleadings":
Defendants are wildly exceeding the special privileges Congress granted to libraries under Section 108 by systematically digitizing, reproducing, distributing and putting at risk millions of works through their mass book digitization program. Defendants' so-called orphan works program is similarly inimical to the Copyright Act, as it violates Section 108(h)'s explicit limitation of libraries' use of orphan works to the twenty year period preceding the end of their copyright term. Neither fair use under Section 107, nor any other statutory exception under the Copyright Act, can justify Defendants' systematic and concerted digitization, reproduction, distribution and other unauthorized uses of millions of copyright-protected library books. Accordingly, Plaintiffs urge the Court to grant their motion for partial judgment on the pleadings.
Read more about it at "GBS: Authors Guild Goes for an Early Knockout," "Guild Motion Asks for Quick Ruling on HathiTrust's Fair Use Defense," and "A Masterpiece of Misdirection."