This is very unfortunate and sad. I hope he wins in Court. The NSA/administration are really trying to destroy the last bit of privacy in the world, and they will fight relentlessly until they do (especially if the People aren't fighting back).
Most likely, this is all so secret with secret courts foreseeing secret rulings that unless he has solid capital to burn on legal defense, he won't get far. He won't get far probably either if he has the money. I am sure courts would stretched it in infinity. And I am sure the owner is businessman more than a libertarian.
It's been years since I've worked with Ladar. However, he's a man of great intelligence and principle. It's not unheard of for "the little guy" to take on the machine and win. I believe that Ladar will prevail in the end, and I hope he'll resume operations or come up with something even better.
I'll be donating something as soon as I finish my post.