That is true. Though in this case, all involved knew it was BS.
What most people don't realize is how the rules change once you are "collectible". When I was younger and poorer we never got sued.
Now, there's always a couple of people suing us. Patent trolls, trademarks, hostile work environments. And no matter how frivolous the case, if you read their filing you'd think we had been beating baby seals.