Hotfile provided a takedown tool to the studios so that they could take down illegal content. However Warner insisted on using it to take down a variety of content that was non-infringing and had nothing to do with Warner Bros. WB initially said that it filed a bunch of false takedowns, but said it was no big deal because it was all done by a computer, which was what everyone expected. However it turned out that at least one work was taken down by a WB employee, and that employee had done so on purpose.
Hotfile is trying to carry out a countersuit against Warner which accuses it of perjury. Lawyers seem to think the case is sadly a little weak because the DMCA clause relating to perjury is a badly worded. The studio practically told the court that the way copyright law is written, it can take down whatever it wants and no one can stop it.