Indeed, the fact that he was able to obtain a letter from another school limits his damage claim to costs of transfer, time lost, mental anguish. But that's if he files a lawsuit personally.
My guess is that the lawfirm sees this as a landmark case (witch hunt as you called it) - to enforce the anti-discrimination laws.
No doubt. They dream of glory, of a time when "creation scientists" will be accepted --by force! -- as if they were real scientists. When that happens, it will be like it was when Galileo was convicted of heresy, his book was banned, and he was locked away under house arrest for the remainder of his life. Thinking men fled from countries ruled by the Inquisition. They went to Holland, to England, to France. Put pins in a map, one for each citizen of each country who ever won Nobel prize in physics and chemistry. (It has to be for work done in that country, not just for his country of birth.) The pins will not be evenly distributed. Europe and the Western Hemisphere still show the scars from the self-inflicted wound of the Galileo affair. That is the madness which this "student" wishes to unleash in America.