Take them to court for what?

Linode is a web host and not a bank vault.

The question is not whether Linode's servers are perfectly secure (no such thing anyhow), but whether their level of security is reasonable for the service they provide, and it certainly seems to be.  Linode is not a suitable place for storing confidential information worth $200,000, be it bitcoins, trade secrets, or credit card databases.  Most judges will have little sympathy for this kind of carelessness.

What happened here is the equivalent of someone storing a suitcase full of cash in a rented garage and then wanting to sue the garage owner because he didn't install armored doors.

Also, technically speaking, bitcoins are not property but information. In court this probably wouldn't be treated as a theft but a privacy breach.  You stop "owning" bitcoins the minute the wallet.dat files leave your physical computer.

I would hate to see Linode being taken to court because it would have the nasty side effect of web hosting companies refusing to host any service that is related to bitcoin in future, even if it doesn't use live wallets.