Rena - welcome to the great underground American welfare society, also known as our legal system. Before you throw up your hands in despair, there are a few things you can try. I’m not a lawyer either, but BTDTDGTTS.
1 – How long have you had your company name and how long has it been in the public domain, such as the Yellow Pages? Prior use can go a long way toward defeating these mindless claims.
2 – The main issue is how likely the names are to be confused, as I’m sure you’ve discovered. It sounds like your company’s name is like a lot of others, so that pretty much negates that argument.
3 – Have you taken any steps to trademark your name with the state (forget the feds, it’s a nightmare, ask Doug about that)? Many Secretary of State offices will do that for a nominal fee. That is some protection again this type of crap.
All of that said, find a lawyer who will do some things for a set fee, probably less than $1,000 – draft an answer to this lawsuit asking for summary dismissal because it is meritless, write a letter/contact the other party’s lawyer to work out a compromise, and above all, don’t give in. Many of these types of suits are extortion, pure and simple, by someone looking to make an easy buck. Time is on your side.