at termination, employer admitts no cause. They now have discovered possible cause - now what?

I was terminated the day I asked to renegotiate my employment agreement. In my UI hearing Employer acknowledged they had no reason to terminate me other than suspicion. UI ruled - that "cause" is a matter of fact, therfore, they had no cause.

My employer is now trying to enforce a non-compete clause, and has sued me. In my deposition, I acknowledged some information on my personal email had been "transmitted" to another former employee. No malicious intent, it was an error (honestly) - that person is willing to agree not to "use" it against former employer.

I am unemployed for 5 months, a valid offer exists.

My research says that when the employer breaches the agreement first, the agreement ends in total.

Their lawsuit is the ONLY reason they discovered the "issue".