In general, a lawyer saying something with the form "After $client did $actions without consulting us, we recommended that $client take $actions to do damage control, and they did so. We no longer represent $client" is about as far from a good sign as you can get.
Now, he might still have a case. But I'm pretty sure the above is lawyerspeak for "client fucked up, and we don't want to deal with them anymore".
> It says nothing about the merit's of the clients case
Even if it doesn't say anything about the actual merit of the case, it probably says something about their chances of winning. (Since the client probably won't be able to stop their self-destructive behavior)