I am going to preface this by saying that it is, in theory, possible for Sophia Stewart to be mentally ill and still have had her work stolen. It's also possible for her to be mentally ill and capable of intentionally lying! Regardless, it is pretty clear from her court filings and interviews that she is extremely mentally ill, a liar, or both.
Some claims that Sophia Stewart has made:
She claims that submitted her story to "a magazine" in 1986 in response to a science fiction competition hosted by the Wachowskis. Not only does she not have any proof that this ever happened, but the Wachowskis had only just graduated high school in 1986 (Lana in 1983 and Lilly in 1985), and did not start writing professionally until 1993. She has also claimed that she sent her work to George Lucas in the hopes that he would direct a movie based on it, and it was Lucas who sent the Wachowskis her work. She has no proof of this claim, either, and apparently doesn't see how it contradicts her other claim.
She claims that she wrote "The Third Eye" in 1984, but did not officially register the copyright for it until the early 2010s, well after she lost her first case in 2005, which she lost due to both a lack of evidence and failure to appear in court.
Because she lost the case, she was ordered to pay attorney's fees for the winning side, which were obviously very expensive. She then sued her lawyer in that case for malpractice, with the damages being, among other things, the attorney's fees from the first case. Her lawyer in that case definitely didn't do his job and she did win that case, but she was only entitled to the money she paid him as a lawyer and any money she was supposed to pay as damages. Basically, the second case was moving the onus to pay the damages from the first case from her to her lawyer, not winning the original claims.
Some of her copyright claims are on things called "The Animatrix" and "Enter the Matrix." They are not the same things as the actual Animatrix film shorts or the Enter the Matrix video game: they are an artwork and a work of text named after those things. Basically, it's like making a drawing of a half man/half bat hybrid, naming it "The Batman," copyrighting it, and then claiming you own the copyright to DC's Batman.
She claims that she invented H&R Block as an eleven-year-old prodigy doing adult's taxes, and that's why The Matrix has binary code in it (because both it and taxes have numbers "sacred geometry" in them).
She claims that the FBI is going to arrest the Wachowskis on RICO charges because they stole her stuff. This has never happened.
She wrote a legal brief claiming that the judge in her first case slept her way to her position, based on the evidence of "God told her that it was true."
She claims that the Illuminati called her personally to tell her that she was going to file a second lawsuit.
She claims that she is able to "crack any system" (including successfully practicing trademark law without ever having studied it) because she is ambidextrous.
She thinks that movies talk directly to her.
She believes that CERN/the Large Hadron Collider is a machine to kill people by manipulating the weather, but this plan was foiled because of powerful voodoo wizards counteracting it.
And, this is the biggest one: even the documents/treatments she claims to have written and had stolen bear no similarity to either The Matrix or The Terminator other than them both being scifi.
(I am taking this mostly from the October 2, 2018 Knowledge Fight episode "Matrix Schemes and Billions in Liens," but I also looked up her original court case and found the archived version of the Black Excellence article on her, if you want to check my work.)
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