Lets get this straight.  They are losing that much money because?  Because the value of the property is that much less than what they tried to sell it to the State!
The only victims are Alaskans when the majority in the Legislature pays outrageous lease amounts for over priced property to benefit their supporters.   Thanks to Governor Walker we aren't buying this property.  Those individuals involved in creating an illegal deal should be held accountable, not the State and its citizens.  
I am not a lawyer, but I learned in college that an illegal contract is not enforceable.  Defend the lawsuit.  When you win, get a judgement that makes them pay our legal fees!