Right, and it's for the company to tell us. If there was a settlement that gives him ANY percentage of this company, especially with debt or preferred stocks, then there's a bright red flag. If on the other hand, he was given some nominal settlement, then the situation may not be so bad.
Paul Taylor's prior involvement with this stock significantly diminishes its value -- as with everything Paul Taylor touches (see NCVT and CCDX), and it would be prudent for management to release details of the settlement and PT's ownership interest. They were willing to talk about it prior to the litigation, so no reason exists not to talk about it now.