I would agree with you if their SEC filings were on time, the GetFUGU deal wasn't riddled w/ unanswered questions, and if transparency in general was greater.
Under the circumstances - there is absolutel NOTHING undignified about answering these claims.
As another poster indicated - the man on the street is going to soon be thinking of Spongetech as a scam vs. a rising star due to the news. All the advertising $$ spent are going to go down the toilet w/ the marketing and advertising if they don't stop this now. The water cooler crowd w/ news stories is very very powerful and that will thwart any attempts to make Spongetech "a household name" in the next year plus.