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Charter has not alleged facts plausibly showing that plaintiffs knowingly or materially misrepresented its infringement claims in the original complaint

Yes, the law works as intended. Large companies can continue to use unaccountable algorithms because mens rea doesn't apply when "the computer" did it. It's just like the cop throwing a coin^W^W^W having you sit at the roadside for two hours until the drug dog arrives, and you have no recourse.