According to the complaint, the NJTA requested the video's removal from YouTube upon learning of its existence. YouTube complied, but the video had already been copied by other users and remains on the site. "YouTube did not try to prevent the very same video from being uploaded again by users immediately after it was purportedly removed," the complaint reads.
I can fully understand the difficulty in monitoring every single video uploaded, but the NJTA is still upset over the incident and is taking the matter to court. It isn't just YouTube under pressure here, with other companies and people being targeted. Likely, the bigger issue is that the video was stolen more than anything else. The video was posted on other sites as well, such as LiveLeak.