Odds are this will be settled out of court, with Rockstar handing him a disproportionately large wad of cash. And I doubt there will be any hard feelings.
If this guy is right, then Rockstar screwed up somehow. It probably wasn't intentional. They run a business, which means that, in cases where they don't have a leg to stand on, they'll own up to it and pay the fine, so to speak, before making sure they never make this mistake again.
Lawsuits like these are mostly a matter of principle. Mr. Dillinger doesn't seriously want all the unsold games to be recalled/destroyed, he's just using that as an ultimatum. He's going to ask for more money than what he believes he deserves, because that's just how things work--when a company screws up, you hit them hard, to deter anyone else from screwing up. And Rockstar will go along with it, and be sincerely apologetic, because that's the price of running a business.
This is all assuming that both of them are fair and rational, of course.