Um, maybe because they actually do have a case?
Also, if you bring it to court, there's at least the chance the NCAA (which doesn't want its own transgressions out there for the public to see) decides to settle out of court and allows UConn to compete in the tourney. That's precisely what happened with UNLV/Jerry Tarkanian in the early 90s.
And if UConn loses, I can't imagine how much money this will cost them in court fees. I can't imagine how much the appeals process has already cost UConn. I also highly doubt that the NCAA wouldn't go to court, because this whole idea of having stuff to hide is just made up BS from fans. The NCAA has nothing to hide. Clearly and plainly, we can see that they are discriminatory and favor certain programs. Anyone can recognize that.
I'm not sure exactly what legal ground UConn has to stand on anyway. The facts are the facts. The NCAA implemented a rule. UConn does not pass with said rule. The NCAA is an organization and not a government entity, therefore, they can pretty much create these kinds of rules. There are probably parallels with other organizations other than the NCAA doing similar retroactive rules. And if UConn's legal ground is that "it isn't fair"...well, too bad. Life isn't fair sometimes.
Regardless of the whole lawsuit thing, this wouldn't have been an issue if UConn did a better job actually watching over the players' academic scores. Yeah, the transfers hurt and yaddi-yadda. But the matter of the fact is that some of those people stuck around here. Some of those people continuously fell through the cracks for years. And simply put, UConn dropped the ball. Or, quite simply, if UConn sees students like Dove, who will have problems academically, and probably won't contribute much on the court...don't accept them.
This whole thing sucks. It blows. I hate it. But damnit, I just want it to be over already. I'm moving on at this point and will look forward to the 2013 season, playoffs or no playoffs. They'll still be fun to watch.