It's dead in the water as far as I can see. For one they didn't sell enough to make it interesting, second the lawsuit will likely cost more than it's worth to FG to continue. If they allow it to go to court it will cost them dearly and they still don't have a product.
The smart move would be to call it a day and cut the losses, Arrington may have a legal case but it seems like he's throwing good money after bad as well. The joojoo isn't going anywhere, the 'profits' are non-existent and there won't be any in the future.
Maybe he wants it back as part of a settlement so the project can be sold to a third party?
It's quite likely a vengeful attempt to prohibit FG from making any money off of it. While the saint in me agrees with your perspective, the devil says "If I'm not getting rich off this pad, then nobody else is either," and that's what I suspect Arrington's doing.
On the off chance that FG turns it around and somehow does manage to take it to market successfully (which this suit will almost certainly impede,) then Arrington and company should get to reap the proceeds (if that is what the court finds.)
