"concerning documents from prior litigations and the application of foreign law to privilege issues " 

Given the concern about getting PTSC included in the suit, might the prior litigation thing be an attempt to insure the J2 that they are dealing the the sole owners and Fish is not going to enter the picture somewhere down the road?  What other prior ligitation would be of  any interest?

I suspect that the latter pertains to communications between J3 and ARM. If the J3 were concerned about the weakness of their defense, (possibly the reason ARM inserted itself), then their main concern is minimizing the settlement $. IMHO that would not be ARM's position, and settling does not help their cause. If any arm twisting was discovered, would that effect anything? In other words the main hinderance on settlement is pressure from ARM.  How likely is this?