"I dont really have any Assets only 9k in the bank, the 11k was an option that I sent to them for consideration and the accepted it."
If 9k and lots of debt is truly all you have then it looks like you are collection proof.
Also consider the following:
How are they going to prove that ALL of your cases were counterfeit when they only purchased 1 or even 5 and you had 3 suppliers? You could have sold 1000 cases from 3 different suppliers and perhaps only 10 were "counterfeit".
They just happen to purchase 1 that was arguably "counterfeit" according to them; however, such does not prove all the cases you sold were counterfeit, especially where you had three suppliers.
So they have a proof problem.
Consider the following hypothetical path:
Tell them you are considering bankruptcy and have an appointment with a bankruptcy attorney (by the way, not such a bad idea as smart people plan for bankruptcy many months before filing) but wish to pay your debts if possible.
Which means you cannot pay them the 9k amount especially since they have a proof problem and you are confident the vast majority (if not all) of the OBCs you sold were authentic.
That you have no evidence that you ever sold a counterfeit OBC and that you have seen neither their report nor their evidence and they are asking you to simply take their work for it (that you sold counterfeit goods).
That you must therefor decline to settle this suit and defend your rights until your money runs out. (will be very quickly - they know this).
Or, in the alternative, you can offer them $100 to cover the cost for that 1 OBC they claim is counterfeit just to make the issue go away, for a full release to any further related legal claims.
Now you need to realize they might follow through with a suit but I submit the risk is low, but not zero.
Lawyers are profit driven and do not like working for free. If you have no assets, in the end, the best they will do is get a judgment that can be discharged in bankruptcy or simply goes away after 10 years. Why would they spend $50,000 just so you will have a judgment on your credit report for 10 years?
There is no profit in it for them.