wow that sucks. some people just need to go away.
Happens in show business the time too. Producers will see a script they like, and either reject it or wait for the option contract to expire so they can reinvent the wheel (with some changes so they cant be sued) and make the show/movie they want without paying the original writer.
Most recent verson of that in hollywood is with the movie gravity. Originally, they had bought the rights to the book gravity, and the author, tess gerritson, rewrote the third act to have the protagonist floating alone in space after a disaster on the shuttle or iss (sound familiar?). Time went by, the studio went under, and their scripts were bought by another company. A couple years later, gravity comes out and it basically resembles a movie based off only the 3rd act of the original gravity script, with no credit given to the author. When she took them to court, the judge ruled that her contract was with the original company, not the new one, so they werent required to honor it.
They ended up offering to settle, but she refused the money because it came attached to a NDA, amd she wanted to be able to talk about how she got fucked as a warning to others.