It is certainly real. A company I used to work with sued a former
employee who refused to divulge a password and the employee was
fined $800/day up to $8,000. Seems the judge just didn't buy that
the woman had "forgotten" in less than a week a password that she'd
been using every day for the last year.
She at first tried to claim that she'd recently changed it. It was
pointed out that the company had backups over a year old, and that
the company, once it cracked the password, could try the cracked
passwords on the backups. Faced with perjury, she recanted.
Of course, this was enough years ago that the $250 "guaranteed
crack" wasn't available. The economics have changed, certainly, but
suing for lost productivity can still be a valid claim.