AGs are elected politicians they campaign on this kind of stuff, so them being behind this particular suit doesn't legitimize it but probably the opposite.
If people voted for them and they do this then that is the system working as it should be. Society isn't run by an elite group of the learned.
They don't bring lawsuits that they can't win. I can't name one case they lost.
Are you serious? AGs lose cases all the time (often they get settled out of court though). It's a trivial google search away to find examples
Settling is losing for the company. Company has to pay millions or even tens of millions on fines and be subjected to strong injunctive actions. Since I suck at google, find me a company that won a court case against a state in federal court.