This is stupid, but not for the reason you think. It's not stupid because he 'can't recognize who is sueing him'. That is a typical stalling tactic by attorneys that know that you are boned but you have money.The idea is that you can outspend the other party for fees. This usually doesn't work at these level s if the other attorney isn't stupid and is working for a winning payout, and not for billing.
It's stupid because if this ever goes to court, it will look really bad, either he is purposefully stalling or he is incompetent. He took some really short-sighted legal advice.