This sounds like the federal government concluded that Damore's firing did not violate federal employment law. I think (but I'm no expert) that the issue of whether Damore's firing violated California employment law is still an open question.
This is correct. The National Labor Relations Board issued an Advice Memo, declining to prosecute a case under the federal National Labor Relations Act.
Damore's California lawsuit, which per the first page of the complaint, lists the below causes of action under various California laws, is unaffected.
CLASS ACTION COMPLAINT:
1. Violation of Cal. Labor Code § 1101
2. Violation of Cal. Labor Code § 1102
3. Workplace Discrimination on the basis of Gender and/or Race in Violation of FEHA
4.Workplace Harassment in Violation of FEHA
5.Retaliation in Violation of FEHA
6.Retaliation in Violation of Public Policy
7.Retaliation in Violation of Cal. Lab. Code § 1102.5
8.Failure To Prevent Harassment, Discrimination, and Retaliation
9.Unfair Business Practices, Bus. & Prof. Code Section 17200 et seq