[medius]

Here's my take on it:

He has lost all credibility as a trustworthy individual. Anything he builds will be seen as tainted by IP stolen from Google (whether true or not). Most companies will avoid doing business with him for the fear of being pulled in some lawsuit and/or bad PR. This will put a major drag on his company in attracting engineers, investment, etc. He is definitely an extremely talented engineer, but his problems may be beyond any technical ingenuity that he can come up with.