Thing to remember is that in exchange for the settlement, MyPillow did not admit guilt or liability. This is standard in settlements like this. So technically for legal purposes, the claims against the company are unproven. Thus you can say that Mr. Lidell and his company committed fraud and/or engaged in false or misleading advertising, but under the law you would be wrong.
Right.
This is the lawyers' way of extracting protection money from the successful and productive for an unfortunate turn of phrase that can be constructively misconstrued in court.
Actually fighting such a suit can cost multiples of the settlement, and those who bring the suits aim for that 'quick score'.