Could you please clarify what do you think is horrible? Anyone can sue anyone in the US, for any reason, and allege a lot of bad things. It also true that cost of litigation is often much, much higher than a settlement - e.g. the 3 employee suing asked for $200k in damages, which I assume is just an opening offer. A reasonable lawyer can easily cost upwards of $500/hr, and require many, many hours of work even if the process never gets to the court.

My close friend is been sued for ridiculous reasons by ex-partners. It already costed him $750k in legal fees,and although he is very likely to win the case, it’s expected to take another 2 years before the case is resolved, at which point he will be allowed to file for recovering his costs (easily anothe couple of years).