The vast majority of what they scanned were books they bought at wholesale in big lots. Stuff being weeded out from Goodwills or libraries and (mostly) bound for destruction anyway.
No, the lawsuit was because they illegally acquired the books (e.g. downloading them from piracy websites)
These days they are sticking to more legal means like the one you described
No, the lawsuit was because they illegally acquired the books (e.g. downloading them from piracy websites)
These days they are sticking to more legal means like the one you described