We're not privy to the terms of his contractor relationship, but it likely doesn't matter. The initial proceedings were started 3 years ago so it's not a PR stunt.
Since there's no patent, there's likely very little at stake if he simply "stole the idea". Only a patent is a legal monopoly to an idea.
If he stole code that's a completely separate issue, and one that will not be looked favorably upon, regardless if any of the code is in use now or not.
It will be interesting to see the terms of his consulting contract with ConnectU.
A valuation might take a big hit as well.