There are many variables that makes a yes no answer impossible. Currently there are too many instances for a lawsuit to be brought to each. The instances are in different countries, do different laws would have to be navigated for each. For example, in the US, Google has like to piracy websites. Google doesn’t allow housing of piracy on their platform. Google does some removal of listings but it is but exhaustive.

Google is not being held liable, and I bet if an instance happens to cache piracy content due to a user interacting with another insurance, Google and ISPs would be interested in helping that instance so president isn’t set that creates liability for traffic that happens to traverse servers, if it is but being served by the server.

This is a very ELI5, and isn’t a full discussion of all the variables. A difficult question even limited to one country’s laws.

Realistically, the while point of a federation us to make it impossible to shut down, or censor world wide, the community as there are simply too many different servers. This works against corporate attacks as well as legal.