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As usual, the entire story isn't known....but, I'd say press charges. While I agree that a lengthy friendship may sometimes be the basis for letting some types of poor behavior slide in certain circumstances, there's simply no excuse for that what was described here.

I'd also say that you're letting the guy off easy by allowing him to simply pay the medical bills. It sounds like he may have done something like this before and offering to pay the bills may have settled that one. As someone wrote, this is probably not his first rodeo of this nature.