It's worse than that. The timing of Marshall's lawsuit was diabolical.
From what I heard, the S-1 deal was supposed to be finalized last Friday, freeing up the line of credit that would have enabled whatever they needed to do to move the business forward, and including perhaps to pay down some debt.
Marshall filed on Thursday, specifically to sabotage the funding. Because he apparently has convinced himself that the funding is a premeditated death spiral deal.
If management can demonstrate that they were going to use those funds in a way that would have raised the SP through genuine commercial progess, that should, as you say, expose Ed's move as the real death spiral.
