In my profession, we call it ‘extortion by lawsuit’

“Defamation actions have not infrequently been brought—or jury verdicts have been rendered, irrespective of the plaintiff’s motivation in bringing the action—not to compensate for actual pecuniary loss or to vindicate the plaintiff, but instead to cudgel the defendant and to mulct him for substantial damages that may be like a windfall to the plaintiff.” – Kenneth S. Abraham and Albert Clark Tate, Jr., compilers, A Concise Restatement of Torts