Sounds like extortion to me. Extortion is obtaining either money, property or services through coercion. And I think you know it. How would you feel if someone sued you and said, if you don't meet my settlement demands, I'm going to post nasty things about you on the internet?
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I have to agree that this sounds like extortion. You are threatening to smear their name if they don't offer you a high amount to settle. Stick to what they did to wrong you and why they should compensate you at the higher amount. If that doesn't work, then find a lawyer to sue or address your complaints in another forum. Do not threaten one to get a settlement in the other.
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