They rarely are, especially in california. My guess would be the same, that there was some other reason and it was more of an excuse. Maybe he wanted to show loyalty to the other company.

He was scared. Just like that. You know all that, but when you face a lawyer or an experienced abusive superior, it's hard to be reasonable. Especially if you're not experienced in dealing with people like that.

Still in college is not the best time to challenge a corporation and risk a lawsuit. Besides having better things to do, college computer science students are not known for their wealth, lawyers on retainer, or breadth of legal knowledge.