I thought it was just the normal infighting between companies, but if Palm violated their contracts, that's beyond a Hail Mary to a "If we don't make this work, we're out of business, so let's take a shot and see what happens."
I’m seriously surprised Apple hasn’t pursued this line. Maybe they have, you know how secretive Apple is now.
Also, they could do some serious damage to the former employees who now work for Palm for violating trade secrets concerning the Apple USB ID.
This is going to be a blood bath and Palm isn’t looking good right now.