So what exactly was she threatening her employers with?

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What the other guy said. Sexual harassment was REALLY obvious. The phrase she uttered in one episode is key... something like "You guys are making me really uncomfortable." That's code for, "I'm going to sue your asses, as you have now been informed."

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She was colluding with opposing counsel to keep something from going to trial...what's in it for her?

No. She discovered that her boss, David Tellis, was colluding with opposing counsel to keep something from going to trial. She was in a very competitive intern program in which she was one of 10 interns who had been hired but only two of them would receive jobs at the end of their internships. She thought sleeping with Tellis would give her an edge. But when he realized she knew of his collusion, he rejected her and transferred her to intern for a different attorney. So she went to Plan B and gave evidence of Tellis' collusion to Erin, who was also involved in the same case. Apparently, she thought getting in good with Erin would now be the best way to get an edge in the intern program. But she didn't know Erin was also in on the collusion.

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