Actually it's worse... or rather stupider. He offered to fix it (which really is just involves filling out and submitting a web form) if school settled a lawsuit for $200,000.
Now let's assume this guy is totally in the right as far as the claims in his lawsuit are concerned. That doesn't give him the right to hold his employers' systems hostage until he gets what he wants. Those systems still belong to them.
What was he thinking? Of course the courts are going to order him to hand over the metaphorical keys to the system. And the judge isn't likely to be sympathetic after this. On top fo that any future prospective employer is going to find out about this the instant they google "Triano Williams".
Based on the levels of stupidity and assholery displayed here, I'd be amazed if he weren't in the wrong.