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I would completely ignore them until you recieve court papers that you are being sued.
There's been a few people that have said thy were going to sue me (all just local people) over stupid stuff like cars (for instance, I sold my old car, someone was interested in it but woudln't give me deposit, so i sold it to someone else and he claimed we had verbal agreement to buy the car from me). Nothing ever came of any of it... I say just ignore it until you are served papers, then worry about it. You made your offer, which was more then reasonable. If they don't want to reimburse you for your losses, a court case for this is going to cost LOADS more and they won't go through with it. I'd look in to if you could turn it around on them with some kind of extortion charges (but that depends on the country).
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