It stopped at the 2nd Circuit Court of Appeals.
Anyway, after that bill Bush signed into law a year or so ago on tort reform, federal lawsuits have to be taken to the courts local to the defendant, meaning the MPAA/RIAA is unlikely to get a judge that they have bought and bribed.
I think the copyright cartel has realized that, thus their current campaign of extortion, "Pay us $3K now and we won't file a suit and ruin you with $100K+ in lawyer fees." They have basically admitted it is extortion, refusing to back down on an obviously erroneous threat for the explicitly stated reason that it might encourage others to fight.
Actually they are also caught tampering with wietnesses.