One of them went on to start their own physical pentest firm. I think they're doing fine. I also think if they'd lost clearances, or ran into later clearance problems, that would have made it into their complaint. I don't know, maybe you're right. It's not like I disagree with them about suing.

THIS should be illegal. If you are arrested and have all charges dropped, you should not show up on any database whatsoever, nor be required to answer “yes” to “gave you been arrested.”