KNC don't have a gaggle of lawyers, they have one guy and he really doesn't seem to know what he's doing.
According to the Wall Street Journal article I just read here
http://blogs.wsj.com/venturecapital/2015/02/03/bitcoin-mining-company-kncminer-gets-15-million-amid-lawsuits :
KnCMiner disputes, and will continue to dispute, all refund claims regarding the Titan miners. We believe that there are very strong legal grounds for KnCMiners position, wrote Per Widman in an email to VentureWire. Mr. Widman, an attorney with Advokaterina Liman & Partners AB, represents KnCMiner in the lawsuits."
http://www.limanpartners.se/index.php?pageid=3&subpageid=65Per Widman specialises in employment law and dispute resolution. He also has extensive experience within the fields of contract & company law, procurement law and insolvency law.
Sic'em Ms Lin!
So we're going by what what Mr Widman has said about himself on his company website. I'm guessing it wasn't going to say:
Per Widman specialises in scratching his bollocks and dangle berry picking. He also has extensive experience within the fields of dandruff procurement and flatulence.
As I said I have read his defence and it is pretty laughable. But we'll just have to wait and see what a judge makes of it.
From same article as above:
"Mr. Kotting said KnCMiner is generating substantial cash flows, but much of it is being reinvested into upgrading its equipment, and maintaining its data center. "
By the same token I wouldn't expect Mr Kotting to say:
KNCMiner is generating so little cash flows they had to come pan handling to me for money, and much of it is being reinvested into equipment instead of shipping miners to their customers so now they're in a legal minefield.
I'm not saying those quotes aren't true but we probably need to look for more objective sources than KNC employees.