Logic is a wonderful thing.

Logically, The CEO and BOD have a duty and obligation to do everything in their power and skilset to advance the project.  In order to diligently do so they must investigate and evaluate any and all plausibly available courses of action to achieve that end.

At the very least, they (plural intended), must test the validity of Briscoe's assertions of risk capital availability and JUSTIFY pursuit or non-pursuit thereof.

Under current and ongoing circumstances the pursuit and non-disclosure of petty (and perhaps malicious) lawsuits could be an egregious act of negligence and incompetence by way of lack of diligence and malinvestment of available resources.

Even if one can WEASEL out of disclosing the existence of lawsuits by claiming "I forgot" - AKA "The Dog Ate My Homework Defense", one might reasonably ask: "What strategic purpose is served? How does this advance the project?"

IMO