Of course it's not over.

It's going to trial. The asshole contractor and his shady wife contested the allegations. The law is on our side tho. We have a guarantee on their contract, a breach of implied warranty, and their reputation in past dirty dealings in our favour.
If you enter into a contract when you know you don't have the proper license and then falsify a government application to get a permit you leave a paper trail of deceit. There's no way to deny something like that.