I'm wondering if this will just impact their ability to lend out books or if it'll cause the whole site to get shut down. I'm sure it'll impact ebook borrowing and lending in general. Might even impact physical brick-and-mortar libraries too. But I would hope that everything else like public domain books, films, music, etc. wouldn't be affected. I hope.
I read further and saw that a lot of the lawsuit had to do with the CDL program they were using. They either got rid of the wait lists or made them more lenient towards how many people were borrowing ebooks at a time during covid.
Also side note, author Chuck Wendig threw his support behind the publishing companies and the lawsuit and got bullied so hard he locked his twitter account and issued an apology.