If a lawsuit was brought against him and it ultimately failed, or even worse fell apart before even making it to a court, that may have an even worse effect.
1.) Shows desperation in the shareholders that they don't believe in the long term prospects of the company alone so they are lashing out at anyone possible to recover their losses.
2.) Might embolden those who manipulate the stock to show they can get away with anything without any real consequences.
I see where you're coming from, and it would be the right thing to do. But the retail holder is always going to take it in the neck no matter what is going on. They simply don't have the available cash, or other resources to be on an even playing field.
I guess its just my personality if I think something is "out of my hands", I shrug it off and worry about the things I can control. Ahh, apathy. Beautiful.