Absolutely shocking story. It must have been gut-wrenching.

This sort of shit is like a red rag to a bull for me. I would have went ahead and called their bluff and let them get it into court; I would have hoped against the odds that with all the evidence you had the judge would have thrown it out and it would have cost those bringing the action dear.

Of course, reason might not have triumphed and you would have lived to regret it.

But that's just me, and I'm an idiot. Though, I like to think, an idiot with principles.