This is what I've been thinking. Of course money is the most important thing, but their statements indicate a lot of anger not just about paying him all that money, but at the way they were humiliated. It's bad enough for an insurance company to have to pay a large settlement because of fraud. It's even worse when you know or are quite certain that fraud is being committed, can't do anything about it at the time, and especially, that the person committing the fraud makes you publicly look like you are the bad guy. That's the kind of humiliation people don't forget for a long time.
Chewie, a couple of points. First, are you certain that SCA's sixth cause of action is based on relation back? Wouldn't they specifically say it was in that case? This is why the language puzzles me. I can understand they could speak loosely, with words like stripped and no longer, if they had made it clear they were going to argue relation back, but from the language in that cause, this is not clear to me. How can you know that relation back is involved just because they say LA isn't the winner? Wouldn't they say that even if they weren't arguing relation back? I'll grant you I don't know how they could argue breach of contract at this point without relation back, but then again, I'm not familiar enough with the law to say there isn't another way.
Second, assuming they are arguing relation back, it has never been used in this kind of situation. It's potentially a precedent-setting move, seems to me it could be a landmark decision, if SCA wins. This is one reason why I hesitate to agree with others that LA's case has no merit. There's always going to be some doubt when there is no precedent to stand on.