Tis a bit harsh and considering the files have been removed, I can't think they will go ahead with it. You have done everything possible to stay within the law and for just one slight error, I can't see any court taking action. I just hope they can come to there senses and realise that this was a genuine mistake and withdraw the threat. Surely they can see the good in the website and for that alone, send some kind of appology.
I am sure all of EAB will be behind you, if this does go to court, and I, and other members of EAB, will support you in any way we can to resolve this matter quickly.
Good luck and keep us posted.