The flyer this guy was passing out was basically just a list of all the things that a lot of psychics do to trick people. It doesn't even mention her by name, so I'm not sure how far legal threats are going to go.
They never intend them to go to court, unless they think they can drown him in paperwork. They rely on Britain's rather onerous libel laws (the one accused of libel has to prove they didn't rather than the other way around) and that there's really no Bill of Rights to fall back on for free speech.