During my working life, I was involved in only one Court Case (thankfully, it was not an edifying experience). The case was between two PLC's, one (ours) significantly bigger than the other. Our Barrister openly used exactly the tactics bolded to intimidate the smaller player. As I said, it was not an edifying experience. I very much doubt that "the Government" has any part in the "strategy" it is (sadly) the way the Legal System and Legal Profession(?) works, "right" has nothing to do with it, "winning" is what counts, the means are not relevant.
Not saying that I agree with or find such tactics palatable or acceptable, but, they are the prevailing tactics, regardless of Party in power.