Save Digg (unaffiliated with Digg.com) lists the defectors' submissions to Netscape. (Submissions are headlines and synopses of a web page or article, along with a link). The site encourages Digg users to "fill in" for the ex-users (who go by Wayjer, Bloodjunkie, and dirtyfratboy) by submitting the same stories to Digg.
In other words, Diggers are stealing from Netscape what Netscape stole from Digg. And there may be nothing Netscape can do about it. After all, these stories are all someone else's in the first place. Even the headlines are usually lifted from the articles that Diggers and Netscapers link to.
It's an interesting legal situation, sure. But mostly it's just a hilarious idea from the "wise-asses of the crowds."