It's worse than that.
Many large collections were donated to the archive, under the agreement they would be made available to the public. Part of what influenced Brewster to double down on his original error.
> The Joe Terino Collection, a collection of 70,000 78 rpm singles stored in a warehouse for 40 years.
> The Barrie H. Thorpe Collection, which had been deposited at the Batavia Public Library in Batavia, Illinois, in 2007 by Barrie H. Thorpe (1925–2012). It contains 48,000 singles.
> The Daniel McNeil Collection, with 22,359 singles.
Many more listed at Wikipedia: https://en.wikipedia.org/wiki/The_Great_78_Project
At the same time Internet Archive also launched the "Unlocked Recordings" collection of modern "out of print" LPs, as if that somehow made them free to distribute. The inclusion of Jimi Hendrix, Paul McCartney, and Nina Simone records is called out in the lawsuit.
This is how you ruin the reputation of an organization.