Ubiquiti don't have business customers in any significant numbers. Their support and QA are basically non-existant, and after they destroyed their reputation with the homelab/tinkerers community which might have helped fill that gap/make the jump, they're on a downward spiral.
They already had all the problems listed before the security debacle. The only thing added is that now everyone knows their "cloud" is of very poor quality and has no real security.
So now, suing a journalist is going to fix their reputation? Good luck with that, there's around zero chance of that happening. The way to fix their reputation would be to consolidate product lines, do QA and not ship broken software, and stuff like this. Admit mistakes were made, and outline their strategy on fixing them ( the parts about abandoning hardware lines and security). Digging in won't do them any favours.
It doesn't look like digging in, it looks like they're preparing for a pivot, hopefully towards the points you addressed. It's kind of obvious people are only miffed because of who they're suing, but this is a required step in moving forward. It doesn't mean they just want money (it's kind of a low amount) or don't intend to settle.
This situation also brings a much more interesting problem to light, namely, how do companies protect themselves and recover from internal sabotage?
