Ugh. What you focus on increases and suing someone I think is generally a waste of everyone's time and a mistake. But then I read:

    She suggested a change to the ownership structure of the 
    company that would reflect their contributions, according
    to a statement she gave to board directors. The stock
    options that had already vested were theirs to keep, but
    going forward, the split would go from 50/50 to 65/35.

Who is the moron who gave the CEO advice to stab their cofounder in the back for 30% more equity? As the saying goes "bears and bulls make money. pigs get slaughtered."

You should found a company with people you think would make the world better if they got rich. And then celebrate when you all get rich together.

Sad situation and I hope they come to their senses, have a beer and focus on more important things.