In this case, I believe the threat was twofold. They'd drag out proceedings so that we couldn't have afforded to make it to a judgment. But they'd also threaten

In this case, I believe the threat was twofold. They'd drag out proceedings so that we couldn't have afforded to make it to a judgment. But they'd also threaten to cancel a deal with one of our other large customers if they didn't cancel with us. Knowing basically our customer list and how much those customers paid for the software, it wasn't much work to infer the company's somewhat tenuous financial situation. They guessed, correctly, that we'd drop it rather than risk the company's future on a successful lawsuit that, win or lose, would likely mean the loss of a significant customer. There was nothing we'd done as a company that was actionable.