Armed agents showed up at his home. Allegedly these agents, in person, threatened jail time, huge fines and other repercussions if he didn’t relinquish the “stolen product” to the point of terrorizing his wife. Does that sound like a legal or legitimate action or strong arm robbery?
Those are scummy and completely legal tactics. It's not 'legitimate' in the moral sense. It's legal though. It sounds
completely legal. The cops do the same exact thing all the time, and it's similarly scummy when they do it to the innocent, but it's still legal.
Ultimately, the only solution is to simply know your rights and contact a lawyer.
In general, we want things to be able to be solved via legal system threats: that's what settlements are: agreements not to be sued (or sometimes even to dismiss charges) as long as the person with a claim gets paid. The ability to do a settlement massively lessens the load on the legal system and provides faster and definite financial relief to the people claiming harm. When they are
actually harmed, this is a positive good.
Honestly, my issue is how they got the address.
That the person may have an actual legal claim about, depending on what the TOS say.
Understand, I'm not saying their actions are good, or neutral. I think what they did was morally wrong. I just don't see a way to ban their action without tossing important features of how the legal system works.
Though, looking at it more, the accusation of arrest (not lawsuit)
might actually qualify as intimidation, depending on state. Any idea what state he was in?