> There are far more engineers burned by business guys stalling and not paying them then there are business guys burned by shady developers.
This is completely irrelevant. Even Zuckerberg knows that he blatantly ripped them off and stalled them so he could execute it himself. Why else would he settle for ~$65M (Err, I should say ~$35M)? Then to add insult to injury, he misrepresents the value of the stock in the settlement.
I might be singing a different tune if he hadn't agreed to do the work for them.
Every business settles lawsuits all the time, even in cases where they think they're totally innocent. Corporate litigation is expensive and uncertain enough that settling usually cuts the business's potential losses.