Yup. Exactly.
That truly sucks. I know business owners and estranged former employees alike who have executed similar tactics. Unfortunately our lumbering justice machine runs on $, and, at least in that sense, it doesn't discriminate between the vindictive and the wronged.
I have to tell ya', having gone through it once, it just doesn't scare me anymore. In fact, I now understand "leverage". when my employer sued them and gained court order to execute "discovery", they folded like a cheap suit. Their executives, when they were a start up, made all kinds of promises (family, we are not like that, we're here to help the customer) and then the VC bought in and changed everything. "Discovery", in this case, meant internal emails discussing how to go back on existing contract loop holes to screw over employees and customers. Once it gets out there under discovery, that data is public information. When that happened, it was OVER.
I also have to say that this is a failing of lawyers that I've met over the years. They all want to argue "law" but have no idea that the law is kaput, its about leverage. it doesn't matter if you can "win" or "lose", it only matters that you can gain discovery and screw the opponent over.