I'm not a lawyer, so I think it can realistically end in a settlement that doesn't bankrupt Peters. That may be what they're shooting for.
So, someone who is a lawyer - how do the parties approach settlements? I mean, if Peters's lawyers want to pursue that, do they have to wait until after they've filed a response? Can the parties be reaching out to each other right now? What's the procedure and timeline?
I'm not a lawyer, but a family member was recently on the good side (right side, legally) of a settlement. A settlement can occur any time in the process, even if the case is before a judge or jury. In our case suit hadn't been filed, but was used the threat as a bargaining chip that helped lead to the settlement. Accusations were presented to the other side, but no formal papers were ever filed or served. The other side did not want to go to court (and neither did anyone, actually). Lawyers spent a long time talking to lawyers and laying out the logic of why a settlement was good for both sides. There's some bluff and bluster on both sides, and a few threats (it looked for a while like it may make it to court), until both were convinced a settlement was in the interest of both parties. It took about four months.
I can tell you one needs a bulldog for a lawyer in these incidents. Someone you wouldn't want to play poker with.
In the Axanar case, CBS has all the leverage because they are so much in the right and they've already served papers, so Peters has been called out. As our lawyer said, the side that can say, "See you in court," is dictating the negotiations. Any settlement offer Peters' people table or legal question they raise can be met by that response from CBS. CBS his holding a strong hand with high trump cards. They will dictate the terms of any settlement. What I think Peters' lawyers have to balance is whether they'll get better results from a settlement or if they should take their chances in court. I believe it's the former and not the latter. In most cases like this, neither side really wants to go to court (I don't think CBS wants a legal bill in the high six figures just to shut this guy down -- Peters paying their legal bills is problematic at best, a judge doesn't have to require it, and Peters doesn't have the money in the first place). To that end, CBS may toss Axanar a bone in a settlement if it can get eight or nine of the ten things it might have received in court.
At least that's my experience with the settlement process. We can still wait for a lawyer to respond.