I mean, they were told about a flaw and didn't pass that notice to the product team but sued the reporter of the problem. That's proof that they understood the flaw. Nobody sues over a mistaken bug report, or if they don't understand the impact.
The entire legal team should be disbarred for knowingly conspiring to hide evidence of customer impacting flaws. Every lawyer of theirs who saw the proceeding should never lawyer again in the free world.
And then you should go after the management and board who are always equally guilty in these cases. Directly after the people - all the joys of modern cancellation, with charges of dereliction of duty, fraud, conspiracy, etc. Leave them with a smear even if the case doesn't proceed, like their malicious lawsuit could have ruined the bug reporter.
Get them to say stupid things to cover "CEO: I had no idea" and use those against them. "CEO incapable of managing company, in his own words". Guilty or incompetent. Pick one. There's no way to accidentally sue someone so this whole episode is malicious.
Nobody in management or above from this company should ever have a paying job again without someone swooping in to garnish their wages.