Threads on this topic getting too many, posting my thoughts here as well, perhaps a merge is necessary.
Indeed, he (or his lawyer) has made three fundamental blunders in this episode.
First mistake was to sue someone not in politics for defamation. If he has to keep doing this, either he will be seen as spending all his time suing his own citizens or simply as a bully who prevents others from speaking unfavourably of him.
Second mistake was to ask the other party to state the amount of damages. If you yourself do not know how much damage you have suffered, how would the other party know? Especially in intangible things like reputation.
Third mistake was rejecting the proposed amount and repeating the second mistake. The other party has already offered you a sum of money as a peace offering and you should either accept it or provide the sum you are expecting. Whether or not the amount is insignificant depends on the situation of the other party, not your own circumstances. There was a story about Buddha stating that the old woman who used her entire measly savings to buy an offering for him is more sincere than the lavish offerings provided by the wealthy who can easily afford those.
These three mistakes show that he is unfit to be the leader of SG. He is now seen to be petty, stupid and greedy.