Wow, they're really clutching at straws. The legal fees were presumably spent setting up a Canadian corporation. What use is that to the founders now? Similarly, the rent being paid - the cost of throwing all your stuff out (and presumably having to buy it again later) will be for most people way higher than a few months worth of rent.

It's often too easy to jump to the wrong conclusion... but I'm struggling to see a decent explanation for this. And anything less than a full apology is a huge red flag.