Telltale hit with class-action lawsuit for breaking labor laws

Hard to say really. If the company is completely broke (i.e. no chance of liquidated assets) then it's a waste. But if there is any liquidated assets to be distributed to creditors then suing might make complete sense (depends on where it would be placed in claim priority order). Also might make sense if any new funding where to appear (which seems unlikely).

Corporate bankruptcy is a long drawn out affair. I'm still getting notices from the bankruptcy proceedings of a client from more than 3 years ago. Sometimes it's monies owed and finally paid to the estate (presumable accounts receivables finally collected); sometimes it's money being returned to the estate (payables that probably ought not to have been paid); sometimes it's money being paid to the trustees; and sometimes it's even money being paid to creditors.