Often once you mention "law suit" employees/managers are told to stop talking and refer everything to the appropriate legal group. So until you are left with no other recourse, do not say anything about suing. You might get more traction posting the experience to broader websites like Trip Advisor.

I've been following this thread from it's beginning and I don't recall seeing where the OP was actually charged for the cancellation, maybe I missed it. But if all we are talking about is the website saying you "may be charged", then we worried over nothing. Keep in mind the original reservation confirmation should have the same wording.