The sadder part is that this is very close to a great many lawsuits go. This did not read to me to be much different than all civil lawsuits I have seen. Baseless claims followed by threats that it will cost more to defend than just settle.
The biggest issue with American civil law is cost to resolve disputes. It's obscene.
If you know attorneys who are conducting themselves in this manner you should report them to the bar because they shouldn’t have a license to practice law. This conduct was far outside the bounds of their ethical obligations and is not at all what happens in a normal civil suit.
No it’s not. Settling a lawsuit where money goes to the plaintiffs is normal. A lawyer offering to switch sides and knowingly create a conflict of interest using a pretext of a consulting agreement violates a lawyer duty of loyalty to their client. Agreeing to do that in exchange for payment under threat of harm to the company is extortion that is totally different than simply bringing a case in court where there is a venue for objective judgment.
The biggest issue with American civil law is cost to resolve disputes. It's obscene.