Earlier quoted context omitted.
Options: - Refuse to take action. They want engineering done, they can bloody well do it themselves. Don't type a single keystroke in the direction of helping them. - Announce what is going on anonymously. Plenty of avenues for this. - Announce what is going on, publicly. See if they do indeed want to take you to court. - Quit. - Take down the service. Much easier if the service is only a part of your company. Helps…
In a large company, a useful thing to do if something fishy is going on is to go see the company's general counsel.[1] If they didn't know about it, they should be told. Their job is to keep the company out of legal trouble. In many cases they have a legal obligation to do something about it. An attorney will rarely tell you to do something illegal; they can be disbarred for that. If they tell you it's OK, then they'…
Edit: But seriously, I'd take the job loss in a heart beat if my company was doing this crap.