I have been practicing law for over 30 years.
I have done some defense, civil and criminal (up to and including murder of a police officer)
Some plaintiff's work, some products liability (golf cart),
LOTS of domestic, some property.
I have been blessed with a truly general practice over the years.
I have NEVER, NOT ONCE, seen or heard of someone coming up with a "ridiculous" threat of a lawsuit and the company settled with them for a significant sum of money. (over $500.00) and even offering $500 or thereabouts is rare.
The "Loser Pays" for frivilous lawsuit Rule is Rule 11 and it punishes the LAWYER who brings the suit.
LAWYERS do not purposely bring "frivilous" law suits because they are almost always (99.99%) on contingent fee and have to advance even the costs (experts, filing fees, court reporters, etc.) IF the case has little or no chance of winning at trial, why in the world would you put all that effort and money into it? The simple answer is that they dont. The big lie put out by the astroturfing big business groups is just that, a big lie.
sorry for the rant, but, grassroots experience trumps hypotheticals every time