And given their general attitude of hoping to keep things secret instead of working within the law discovery would probably find quite a few incriminating emails & IMs talking about the best ways to hide their dirty laundry. They seem to have the same kind of arrogance about legal matters that's brought down literally hundreds (or possibly thousands) of startups over the decades. I'm not sure why they thought this wasn't going to turn into news, but it's a pretty common mindset.