Come now, isn’t it obvious that they’re consolidating their bad press? I mean, seriously, who reads about a lawsuit against ex-employees and thinks “Well, I wasn’t going to buy the stock, but now that I see what massive, cast-iron balls they have, I’m going to call my broker?”
It’s not like they are suing someone who might pay them hundreds of millions of dollars and it’s not like they have a chance of driving a major competitor right out of business. This is a nuisance move at best but at worst it reminds potential investors that they have serious competition. I’m obviously the last person anyone should ask for advice on how to run an IPO, but I would think that reminding the marketplace that you have competition and boasting about how you are easily distracted from running your business is not a good move.