I see a better than even chance they win the suit. I see a less than even chance they'll recover meaningful dollars. If your hopes come true and they get a big settlement the stock may gap up modestly and then settle back down as this company is losing money by the bucketsfull.
I don't see a bonanza. The essence of this company is the trends in the income statement and balance sheet.
Imagine all that money lost by Mr. Douglas ... I'll bet he is also short a substantial number of shares in a margin account against his long holdings as a hedge. He not be totally stupid. He's got to be both long and short the stock.