Agree that (from what I read) the "suit" has no chance.
But the job of a good attorney is to find a leg to stand on.
An attorney has taken the case.
A leg to stand on has been presented. From a quick (I mean literally quick) scan it appears that Yelp pulled one of the parties "Elite" status as an example.
The action here appears to present a case to get benefit out of Yelp for their arbitrary actions against the complainant. A case does not have to be winnable in order to derive benefit (note what patent trolls do that has everyone up in arms).
While the people here are not employees there is something wrong going on in a community (HN falls into this category) where people put in time and effort and then "privileges" are pulled without recourse, appeal or clear lines drawn.