Retaliatory lawsuits are rarely a good idea.  Employers can feel very offended when an employee files a lawsuit. The employment relationship can be like family.  So, sure, many employers feel some betrayal when they are sued.  But, to respond with a counter-lawsuit almost never works. 

In one case, the employer responded to a discrimination lawsuit by employees with a counter-suit for defamation. The timing of the counter-suit seemed suspicious enough, but the employer also asked for $1 million in damages.  The court eventually found the counter-suit to be frivolous and sanctioned the employer to pay attorney’s fees for the employee.  Not only did the employer lose its supposed counter-suit, but he cast substantial doubt on whatever defenses he had to the original discrimination lawsuit by his employees.  

So, if you, the employer counter-sue and lose, you could incur additional tens of thousands of attorney’s fees owed to the plaintiff – in addition to the tens of thousands you owe to your own lawyer.  Not a good business decision, after all.