It's a violation only if it's nonpublic MATERIAL information. I don't think a libel lawsuit brought on by the Company towards a "shareholder" is material to the share price...
...unless what you are saying is that the libel by the "shareholder" did materially affect the share price downward, in which case, a libel lawsuit could have an upward affect on the share price by muting the said "shareholder"...
...but if that is the case, then that "shareholder's" libel may have resulted in damages for which the Company is entitled.
Otherwise nonpublic but NONMATERIAL information leakage is no big deal.
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