And WTF is the part about, "oh, by the way we demand that you hand your site over to us?" A C&D letter is to get him to CEASE and DESIST, you can't use it to perform a hostile takeover of a competitor.
C&D letters have no teeth. Court actions have teeth, and that hasn't happened.
Nothing to see here, really. Except laughable claims and example of poor business strategy.
What was funny to me is that Ryan set a trap and the guy (Shankman) bit the bait. It was Jason Calacanis style PR strategy at its best and clever if intentional. Why Ryan called getting a C&D a 'shitty move' is the non-congruent part. Ryan asked for it and Shankman delivered a delightfully poor response in spades. Total PR coup for Ryan.
Side note: If you run a half decent business you'll have your fair share of C&D letters and meritless lawsuits. Not worth wasting any emotion over. Just factor the legal cost into your cash projections and out-execute the heck out of everyone.
That being said, I'm working on blog post about your situation. You'll see...
On what legal grounds does HARO even have a case?