AITAH for considering suing my former friend/boss?

Throw away account and names changed.

I (early 30s) was good friends with Sarah (mid-40s) before ever working for her. We had a personal friendship long before anything professional. Eventually, she offered me a job, and I accepted. I started this business with her and it was the two of us for almost a year til things took off.

Over time, I took on major responsibilities — management, payroll, inventory, hiring, etc. — but stayed at an entry-level wage And when I say entry level, I mean this was a $25/hr job ($0.50 -$1 raises annually). Around what you get paid just for a single assistant role. No other responsibilities. When I asked for a raise, it was denied. Around the same time, I was considering another job offer. On the final day I had to make my decision, I had a medical emergency at work caused by a new medication dosage error (I was hospitalized overnight for a dangerously high heart rate).

While I was still recovering, Sarah texted saying not to come in Monday and that we needed a “serious talk” Tuesday — and that I had to bring a witness. I couldn’t find anyone on such short notice. Nor should I have too, I’m just an employee she’s the owner and there is another employee whose job was basically HR who she could have had been present, if she wanted someone. At the meeting, She heavily implied that my emergency hospital visit was me being “too emotional” and a “scare tactic,” she scolded me for coming alone, then gave me an ultimatum: either quit the job or quit the friendship. There couldn’t be both anymore. She said even if I stayed, I’d never advance or get another raise (unless cost of living.)

Realizing how badly I was being underpaid and taken advantage of (working unpaid after hours, remote work, etc.), I resigned — from both the job and the friendship. I received a small severance which she said she’d give if I left that day, and moved on. (I did not sign anything.)

Fast forward to now (2025): my younger former coworker Luke mentioned that Emma, another employee, had put in her notice to become a stay-at-home mom. Later, I came across a job ad for a new business started by Megan (an old associate) — and saw Emma was listed as part of the new team. Curious, I asked Luke about it, he only knew about the SAHM part so then messaged Sarah directly. She said she knew and asked me not to tell the staff aka Luke. I told her I had already mentioned it to Luke, and she said it was fine, it was bound to come out sooner or later. She then thanked me for letting her know.

A few days later, I got a nasty message from Sarah accusing me of “causing drama” and to stop talking to her employees. I had only spoken to Luke that one time and nothing since she asked me not to say anything. I was completely iced out following that text. After trying (and failing) to clear the air, several times, I ended the friendship for good.

Later, I found out Sarah sent Megan a cease and desist letter over hiring Emma. It turns out Sarah pressured Emma into lying about her reason, by showing her the C&D letter she sent Megan, for leaving to prevent other employees from quitting too. It wasn’t even really Emma’s choice — she just went along with it to avoid conflict. Also, just for clarity: Emma applied to the new job on her own and left for better hours and career growth. There was no poaching by Megan.

Now I’m sitting here wondering: AITAH for considering suing her? I feel like I was emotionally manipulated, severely underpaid, forced out, and now she’s still trying to interfere in my life years later. Employment lawyer seems to think I have a good case.

TL;DR: Former friend/boss exploited my work, dismissed my real medical emergency, forced me out of my job, and is still trying to stir up drama years later. Thinking about suing her for emotional manipulation and mistreatment — AITAH?