If I ran the Rosen firm, here's what I'd do:

I'd know that my bogus case ought to get dismissed with prejudice (and if not, that it could not possibly be won in a trial), and that the Ashcroft firm was serious about coming after me for damages. So I would buy a ton of CTIX stock, knowing that it would go up when the case was dismissed, so that my vast profits from buying CTIX would pay for the settlement I'd have to pay.

Then, if for some crazy reason the judge said the case could go to trial, I'd go back to the Ashcroft firm/CTIX and offer to drop the case if they agreed not to pursue damages. (If this unlikely turn of events were to transpire, I sure hope that CTIX would not agree to drop it.)