If someone was doing to me what they are doing to Nic, I think I'd fing a way bootleg my own albums and get away with it. If they caught me and it went to court it would make just make them look even worse (if that is possible).
They have to know that their reputation is going to be mud with almost the whole folk world, if it isn't already.
Almost every major folk artist I have met meet is aware of this situation and is on Nic's side, and I have met a lot of them.
I am surprised they could ever get ANY new artist to sign with them.