Oh yes, I've been involved in a lot of litigation over the years, plaintiff, defendant, expert witness, percipient witness... IANAL, but I've sure spent inordinate amounts of time with them!Remember that with litigation, often the process is the penalty.
But again. in order to file the suit in the first place, there's significant expenditure and the plaintiff facing the process of discovery. The latter is something that fraudsters try to avoid like Dracula and garlic. This one was so egregious that summary judgement and award of costs would be inevitable, which is why there was zero credibility to the threat.
So much panic about so little danger.