It doesn't look like he was CyberSquatting to me. I hope it resolves in his favor. If the person bringing the suit should win it would set a bad precedent for all Internet business.
It's almost textbook bullying. According to the attached pdfs, Kneen has only sold 2 domains in the last 11 years. He'd have to be a really shitty cybersquatter to pull off those numbers.