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As for the possible legal action mentioned, while this is fine, I don’t see it creating the necessary leverage even if it works.
Coming from a long background in business, as well as this industry, I’m not going to outright disagree with you – I do believe leverage is necessary – but I also think you have no idea how difficult it will be to destroy Referback – though you can certainly hurt them, which should really be the intent.
As for the legal aspect – you can be certain that a legal judgement against them will have a lot more leverage than you think, for reasons which are not all that obvious.
So I agree with taking a stand, and I agree with creating leverage, but I think one needs to take an even more realistic view of the situation than you have proposed.