He probably let it go because the lore was great for him.
They have been friends for years and as far as I know they are today. I don't remember the story exactly but it had something to do about Kornheiser was checking into a hotel and there was a problem. I know in the book Feinstein quotes Kornheiser saying "do you know who I am". It never happened. Kornheiser was really pissed about it and mentioned more than once he was considering filing a lawsuit. He even talked to Feinstein on the air about it one time. I guess because they are friends he let it go.