See also: https://en.m.wikipedia.org/wiki/Strategic_lawsuit_against_public_participation

Strategic lawsuits against public participation (also known as SLAPP suits or intimidation lawsuits), or strategic litigation against public participation, are lawsuits intended to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition

There are many, many variants. The idea is the smaller player can’t really afford to fight in court, so even if the larger actor has shaky legal claims they will still win.