My take on this: The clusterf**k that was RMHB under Grisalfi is now fully out in the open. Not good for the stock price, but good in all other ways. Sunlight is good; and my, but the stable was a mess!
There is a huge cleaning-process underway. This is a very good thing. The Grisalfi/Li lawsuit is (probably) the last major bit of cleanup that we'll learn about. I'm not sure what practical consequences it will have in terms of recoupment. For me, it's more about the message that it's in there: We're new, we're clean, and we won't tolerate dishonesty. It speaks well for management and for the future of RMHB.
My hunch is that management wanted to get this last bit of bad news out before 'officially' turning the corner with the announcement of their much-rumored acquisition. Which will very much represent a new start. I hope the acquisition is still happening and that it will be announced soon. At which point, we'll start to see a perhaps slow but steady rise in the stock price, which I suspect is now at its bottom.
Keep faith! Like they say, the darkest time is just before the light.
PS. I'm reserving judgment about Li's part in all this. I can't read if she's a huckster or a stooge. Time will tell, I guess.