The fact that the government is the arbitrating party in a civil suit is incidental to the nature of the dispute.

It may very well get settled out of court in as a result of mediation.

Regardless, it's quite possible that the parties in the wrong here make it right or right-ish somehow before this even lands in court.

I think the fact that everyone thinks the .gov needs to dogpile on with civil or criminal enforcement before that has had a chance to play out or not speaks volumes about the typical moral character around here.