Even supposing it was an illegal name change, why would that allow Redd to break his contract? Unless the contract somehow makes reference to such conditions (which I find unlikely), I don't see how the name change has any effect at all on the contract or Redd's obligations under that contract even if the name change is illegal.
Whether the name change is related to anything else isn't a legally relevant question here. The legal question is, did Redd violate the terms of the contract, and if so, how much is he on the hook for? I have zero insight into that latter question, but the former question I can make some educated guesses on. Contracts often stipulate terms under which they can be cancelled unilaterally without penalty. Now, is it possible that the name change triggered such a term? That seems unlikely (why would anyone bother writing such a contingency into the contract? Was Redd expecting such a possibility?), and you aren't even arguing that it did. Is it possible that Redd was able to cancel without penalty due to some terms of the contract unrelated to the name change? That actually seems more likely than the name change triggering something, though still not a given. We cannot know either way for certain without seeing the contract. But unless the contract allowed for Redd to cancel without penalty, then he's on the hook for something, even if not a million. That's the nature of contracts.
It doesn't matter if the name change does something. What matters is if the name change does anything to the contract. And you haven't provided any reason to think it would. Nobody has.