Perhaps I was too nice. Most VCs recommended dropping/settling the case, since
(1) it was only a year and many startups go bust anyway;
(2) the best people spend their energy on the future, not the past; and
(3) regardless of the facts, many people are wary of working with someone who sued his business partner personally. (As Trump shows, portraying yourself as the victim of a baseless lawsuit often elicits sympathy, while justifying bringing a lawsuit often requires a careful factual explanation.)