If he was not suing an unsavoury gossip-monger the discussion around this would be vastly different.
Irrespective of the legality this was a spiteful campaign at odds with the stated case(s) involved.
Yes he should be held to account for it.
Edit: change to clarify middle paragraph.
Is this a UK/US thing? Being outed in the UK was a political action for sometime in the 80s but has more or less had its time - it has no shock value and little political value. Or is the focus on the supposed cause of thiels actions the irrelevant part?