I understand the complaint and think it has _some_ merit. However, no product was ever delivered so I think part of the defense is that the complaint is pointless, as full refunds are being given. That is, how can a person say they were harmed by the impression that a product was better then it was if that product was never delivered. I _do_ think Lilly screwed themselves with that email. Might be enough to piss off a jury and sway them for the plaintiffs. The other part of the defense that Lilly probably made it clear that this was a pre-order and as such, the Lilly did not exist yet. The video was a demo of what it _would_ be like. Again, no final product so who knows... maybe it would have looked better.
But the plaintiff is asking for $2500 per order and Lilly is already giving back around $500. I suspect Lilly probably does not even have $2500 per order to their name. They probably have insurance to pay for the defense but not to cover punitive damages.