For example, should some future employer decide to Google your name before making an offer, they're likely to come up with an old spat between you and your employer. Even if you're in the right, it will make them think twice about hiring you. This disagreement may follow you forever (Google doesn't forget) and cost much more than $10k.
A better tactic may be to try and leverage your relationship with your friend who is still employed there. If this quarrel is detrimental to his morale, they may be willing to come to an agreement.