The understanding I have of the whole situation is that Lime Crime is suspected of buying its products from wholesalers and repackaging them, despite its claims of uniqueness or products that Doe Deere carefully crafted herself. The entire situation is pretty over-dramatized. MANY companies buy from wholesalers, which is why you can find the same "88 color palette" or "120 color palette" from all of the Coastal Scents, BH Cosmetics, etc. types of companies out there on the web. They all buy it from the same manufacturer and just package them up differently and advertise them differently. What Lime Crime is suspected of doing is nothing new or crazy, in my opinion. If they are repackaging wholesale items, the statements they make stating otherwise are pretty shady, but nothing to get your panties in a twist about.
As for the demands and threats about litigation or suing this or that person... Meh. Every popular blogger and their mother has received one of those types of legal threats, no? The email threats quoted in the Lipstick & Light Sabers blog do sound pretty nuts, but I haven't the slightest idea what the original allegedly-defamatory post said (since the girl was told to take it down and then did so), so we don't know how deserved (or undeserved) the threat was. I'm all about freedom of speech, but let's not forget that there are laws against slander and libel for a reason.