You know... this whole thing reminds me of the "Trevor Law Group" shakedown scandal from Cali a few years ago. They went around suing small businesses for minor infractions, "in the name of the public" always wanting to settle for their own fees. They eventually gave up their "Bar"? or right to practice law or whatever after being sued and investigated for ethics violations.
I'm wondering if this case was actually not started by the seller, but instead started by the lawyer. I bet it's a possibility that there are probably lawyers right now scouring ebay looking for negative feedback remarks, then approaching the sellers and offering to represent them in a case which they will try to settle and then of course probably take like %80 for thier fees.
ugh, that's pretty low.