They know it's a lost cause, that's why they are having the idiot Stern write the response. Remember when he wrote that horrible document before, and shortly thereafter Kim took over again? They don't want to sit there arguing a hopeless case, and losing all credibility with the judge (gotta try to save face for future cases she might hear).

This also makes me wonder if they had the idiot Stern write that document the first time so that they could make him the scapegoat. Sanctions and all that, ya know. "I know I signed the complaint, Your Honor, but Mr. Stern is the one who actually brought the case to us and did the research, not me....."