I agree theyarecomingforyou about the case not being strong. The only problem being that this is a court action in the US, and as we have seen by cases like SCO vs IBM, these things can get drawn out for years. The SCO case going on 15 years now.
The one bit of hope is that CIG is getting sued in California, instead of Texas. Which I find a bit surprising as CIG's original office is in Texas and the Texas court is more likely to draw this out. California is more likely to actually take a look at the documents as presented.
Too bad this isn't Canada. Our courts, though imperfect, would throw this case out with prejudice. The original filing is exploratory, meaning they are trying to find proof of breach of contract, instead of having proof. This is highly frowned on in Canada. Then they purposely misrepresented the contract, which even if they had provided some proof, is grounds for complete dismissal.