I honestly don't think the legal issues have much to do with anything.
Companies are sued all the time for various reasons. Supermarkets, restaurants, hotels, hospitals, law firms, tech companies (see AAPL) etc etc. I would definitely be concerned if the products didn't work, but they do. The problem here is an inability to close sales - specifically the large ones. I don't believe the management and sales staff are 100% at fault - a lot of it has to do with the economy and the acceptance of the technology - but, there's no question more can be done. Probably quite a bit more.
Now, they're on the clock...