This is true. But in this specific case, it is unlikely a single person, especially one in the position of interviewing for a lower level job, would have enough money to rival the company in a lawsuit or cause them severe financial pain. Usually it's the opposite situation that is financially ruinous.
The point isn't that the lawsuit is going to ruin the company. It's that the lawsuit is going to cost the company money in almost every case where it happens, no matter how frivolous the lawsuit. The smart choice for the company is to limit risk factors for having to face a lawsuit.