There’s something odd about this story. Not naming companies is weird - this happened before GDPR which means it happened a minimum of nine years ago. There were no lawyers involved at any point, not even before signing amendments with a company known for punishing vendors on their way out. Nobody even seemed to mind that this shady company with such a bad reputation was reading client emails. There was no attempt to warn anybody or to even solve the problem.
I don’t believe that this ever happened. I don’t know why someone would make up a story like this but this one is very odd.
Of course, you're free to think that. Sometimes dynamics aren't very linear and people are more inclined to avoid problems rather than create more. The concern about this company was obviously well-founded and valid, and the people involved didn't like it. Some of the choices they made were undoubtedly questionable, and I admit I was disappointed. Of course, I couldn't tell the whole story or all the details, but in the end, the company didn't get away with it completely. This event gained some traction through word-of-mouth among colleagues, and their user base plummeted in a short time.