Jaco
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Writing a script where you have a character based on someone you know in real life (but you think you've disguised that fact)? This $3 million dollar lawsuit might change your mind: http://www.hollywoodreporter.com/thr-esq/screenwriter-sued-making-henry-james-697876
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1. The vast majority of modern US litigation is more extortion than determination of factual or legal issues. 2. People can and do file lawsuits over anything and everything.
In other words - the fact that a lawsuit is filed doesn't mean sh*t, especially when it comes to evaluating whether there is any substance to the underlying allegations (ie, whether someone actually did something actionable).
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after my post. Meant tongue in cheek.