[jd]

I don't think you have to worry much about this being a public mark on your record. Bogus lawsuits happen all the time, and especially if the lawsuit is dismissed or if you win it nobody will care a few years from now. So I would focus instead on surviving this lawsuit while taking as little damage as possible. So lawyer up.

[throwaway10283]

Thanks! Another thought I had was to countersue with equally as damning comments. If there's going to be a public document with really bad allegations against me out there, then there should be an equally bad (yet more true) public document with allegations against the company and founder.

[jd]

Additionally, if you're willing to go to the dark side...

If he's independently wealthy he probably has a lot more to lose than you do. You can use this as leverage. If you can get him in a position where he may lose a lot then you can probably get him to back off and drop the lawsuit.

So be willing and prepared to fight dirty (but still get a lawyer). He's bullying you, and against bullies it's often a good strategy to escalate beyond the comfort zone of the bully. He can afford to sue you because he doesn't feel vulnerable; losing the lawsuit isn't the end of the world to him. This is what you must change. Find a way towards mutually assured destruction.

If he's just a bully he's very likely to back off if you put up a fight.

[SoftwareMaven]

I wouldn't consider counter-suing in this case to be the dark side. In fact, it may be the best way to get legal representation with little out-of-pocket spend, since the lawyer could work off a percentage of the potential damages.

[damm]

I would suggest to not do anything that would make yourself look worse in the end. I would avoid saying things negative that he will then turn around and try and sue you (again!) for, such as leaving damning comments in the counter-suit.

However there is nothing wrong with counter-sue(ing) for the cost of your lawyer and the cost of the trial. Find a good lawyer and defend yourself.

[hahnfeld]

Let your lawyer dictate the legal strategy. Any good lawyer knows exactly what pressure points to leverage for the specific situation.