Being threatened with a $250,000,000 libel suit apparently sobers the mind.
They are more worried about the recent signals from Justice Thomas that it’s time for SCOTUS to roll back some of their previous decisions on libel law.
And this is the perfect test case. They very much want to avoid arguing it in front of SCOTUS because their maliciousness is on full display and they will have a very hard time defending their behavior as standard journalism.
Don’t drop the lawsuit. Take it all the way to the tippy top.
Their lawyers should have told them to shut up. Anything they say or do can and will be used against them.