the situation seems to be a lot bigger than just the 'forced' workers comp claim. I think you are on the right path bringing in an external
HR provider to sort through the issues. Managers who are bullying pose a huge risk for an organisation and really shouldn't be tolerated in this day and age. Hopefully as some time has now passed you have got on top of your organisational policies and procedures in this area. Do you have a formal complaint handling procedure? This is definitely a useful tool to make sure complaints like this are handled effectively from the start and that senior management is across potential risk from the beginning of the issue.