The point is that if your potential earnings cap out at $10k there's a very good chance you're going to end up paying more in legal fees than you ever make in a settlement and leave yourself at a net loss.
The cost of losing is small and the cost of restarting again is small. Meanwhile, the potential upside of even one call netting a sale is very large. I reckon two calls netting sales would have paid for this fine.
We have hucksters abusing legitimate business structures. I think we need an “in good faith” escape clause for LLCs that captures folks that abuse them.