The said ex-CX pilot did something really stupid, but firing him seems a bit harsh to me, let alone bankrupting him or dragging his ass through the courts.
There could have been a whole raft of other available punishments. The company could have sent a strong message without the use of the ultimate power. Suspension, downgrade, public statement, whatever.
I think the ultimate act of firing someone should be reserved for flagrant and dangerous deriliction of duty, or repeated demonstrations of complete incompetence.