Gunnabe,
On a purely economic basis, and assuming that we are talking about a discount to the Jan pps and not today's pps, then yes he would be better off with the cash. On the other hand, if the question is not specifically one of money but is in fact part of an internal power struggle, then the shares in question and the subsequent voting rights might be the more germaine factor in the squabble.
As regards to the effect of the lawsuit on the pps, I agree with you, it is inconsequential.
regards,
frog