LUHE: I still don't understand Lloyd's litigation thing.
That's fine, neither does Lloyd.
It's a tactic- his way of having something to respond with when people start asking questions. He will try to dismiss his critics by claiming that they're defendants in a criminal suit. He will try to dismiss anyone else by claiming that they're on the side of defendants in a criminal suit. By implying that they're criminals, he can make himself out to be a victim who is only fighting back against those mean criminals.
And since the "defamation campaign" forms the basis of his recent requests for more financial support, he is going to ride that concept for as long as he can. I think his hope is that the criticism dies down before his support drops to an unsustainable level, so that he can finally rebuild. He has no other viable options, so he is in for the long haul by default.