Just let it go. I would say there is an extremely remote chance this scammer will pursue. Just wait for the oDesk team to come back, but even if no, keep your calm and carry on.
I'll also add that most courts in the West will laugh this lawsuit right out. Judges use common sense in small claims, and a contract requires a "fair trade," this fails both of those tests.
Plus they could file in India and you can ignore it. They cannot really file in the US (or anywhere else) because flights and filing fees would cost more than they claim you "owe."
Overall this legal threat is just moronic. It is obviously a scam (or a second scam after you caught the first scam text and called them out on it).
This is the same as people from India calling from "Microsoft" because your computer has "viruses." Or the "IRS" because you "owe tax money."