Final Verdict Nightwatch is behind the blue file, the destruction that's followed it, and the hiring of Titania to convince She-Hulk to drop her investigation ("convince" with her fists that is, it's Titania after all) But ... wait ... isn't Nightwatch a minor hero?
Let's go back several years to a small town in North Dakota. A team of villains (Doctor Druid, Vibro, Shocker, and Nightwatch [but wait ... isn't Nightwatch a hero? Patience, I'm getting to it.]) have raised an energy dome over the town. A team of heroes (Captain Marvel [Monica Rambeau], Tigra, and She-Hulk) arrives to protect the town. She-Hulk evacuates one town resident just before Druid's spell goes off. Suddenly, the town is gone, and retired hero Nightwatch helps the team apprehend the others. Everyone, including the heroes, (except the townie who is believed to be under some sort of delusion) suddenly remember Nightwatch as a hero but do not remember the town, which has been erased.
No one can make all trace of a town disappear, and it's the police report made by the townie (who lost his wife and child) that is the only evidence of what happened, and is the basis of the blue file.
Thus ends this run of our favorite green-skinned attorney. But fear not, Jennifer Walters will still be around. It seems that the Inhumans, who have kept Jen on retainer for years, are being sued by the City of New York for damages caused by the Terragen bomb. See you in court!