Yes, IANAL but it seems very much like grounds for an open-and-shut wrongful termination suit, given that they have admitted it up front. They could be taken to the cleaners for this.

This guy's back pay of income, severance, and benefits could really add up, but that's more a factor of him getting paid a lot in the first place than wrongful termination suits being particularly fruitful. I wouldn't really describe their payouts as being "taken to the cleaners".