It's a convenient narrative. Here's another one: Senior administrator at the university doesn't like the project. It costs money to provide as it is, and money is always tight at a public university. They should be more focused on income generating patents (which, BTW, UC Berkeley is/was good at). And now they want us to spend even more money? Let's kill the project.
I spent a long time at universities, and I also worked for 1.5 years in the university's disability division, so I somewhat know the needs of the disabled. Part of that division's role was "policing" professors' course pages (albeit only when a student complained), so I'm familiar with the territory. Our position was clear: It's the law.
I also know how university administrator's think - they rarely like initiatives meant for the public good for free.
Finally: How much money did they make suing UC Berkeley? Did anyone (other than the lawyers) make money out of it? Why are people so certain this was a money grabbing lawsuit?