You're probably right. But it could be worth it to the employer in terms of employee relations.
It can be beneficial for your counsel, for things to turn out differently, in terms of employee relations ---- it will mean more $$$ for the attorney in the future from referrals and employees talking about it if things turn out in your favor, therefore, you might at least in theory be able to make a deal such as a contingency arrangement with the attorney representing yourself against the hostage taker to help ensure that doesn't happen; make sure to have done all your anticipatory homework well in advance of the action you are pursuing legal recourse against.
Just because they can afford counsel that charges a higher rate or requires more hours: it does not necessarily mean they will get as much more for their money as they paid for, especially if there is a strong case against them. If the facts are sufficiently strongly in your favor, then they will be wasting every cent, especially once you demonstrate bad faith in attempting to drag matters out --- and recover attorneys' fees from your fmr employer as well; they can hire more people or more hours of legal work, or attorneys who are in higher demand, however they will burn through a large amount of cash, and there is a point of diminishing returns. A great plumber can charge a bit more than a bad one, but a decent plumber who charges astronomical prices can't give any kind of assurance of a more effective job, just because their prices are high.
Perhaps it helps if you yourself go get some legal creds and then pursue your fmr employer as an attorney representing yourself, then they won't have much luck running up your hourly legal costs, and with your a$$ on the line, you might put more hours a day into that one case than your adversary's "high priced attorney" dividing his/her attention across 30 clients would even be willing to work on it.
Either that, or find an associate willing to help you press the charges pro-bono, and cost the former employer as many $$$ as possible.