I think it is important to remember that a lawsuit is one side's version of events. Once USPSA lawyers up, they will surely have defenses, including that despite some initial confusion, and correspondence with the local sheriff, out of an abundance of caution and at great expense, they moved the event across the country to Alabama.
If I were in charge, I would be unbanning a number of people, in exchange for an agreement to work in the best interest of USPSA.
By now, USPSA's counsel will have advised all directors and employees to not destroy and maintain all email, text messages, other documents or social media posts relevant to Cameo and the terminations. This is going to be expensive and uncomfortable, and all should consider settling this.