The article quotes them as planning to train their model on course materials automatically. But it is not clear if that actually happened. Individual students were always free to upload course materials.

I'm not sure what is dishonest about that.

Edit: I'm not sure if the article has been updated from when I first skimmed it, or I just missed it, but this seems directly addressed now:

> The students were also accused of “disseminating course material” by allowing students to use their own, individualized Canvas API tokens to connect Eightball directly so they did not have to upload PDFs to the tool themselves. “The upgrade did not change what students could upload to Eightball or what learning materials Eightball could produce upon request,” the suspended students’ lawyers note in the lawsuit.