Daughter lost job

So to speak. She has her own business and had a contract with a German firm as their North American Manufacturer's Rep for the past couple of years, the result of a relationship she created when she cold-called them and convinced them they could have a profitable share of the North American market. They were so impressed that before the end of the 6 month trial period they tried to hire her full time. She declined. Long story short, she begin to get suspicious when a few months ago she met for a business lunch with them and at end of lunch was asked to wait in the lobby so the men could discuss business. She was absolutely livid. It's gone downhill from then. Monday she got a call from guy she caught in a bold face lie last week that they were reconsidering their contract. Oh, and they don't intend to reimburse her several thousand in expenses they insisted she incur and approved in advance, nor the monthly payments for May & June. She's hired a German lawyer to do some preliminary "Pay or else" work. Not knowing about lawyer, they called during the week to make sure she's still working for them. HUH??? It's totally bumfuzzling!