Yep :-) I believe that frivolous lawsuits are like terrorism, in that the fear of them does vastly more damage than the actual problem; but as this story demonstrates, they do happen, and can be very damaging. It worked out OK in the end, though: Black Diamond are still going, and highly respected, and Chouinard's still with Patagonia, who seem to be doing pretty well for themselves (and are apparently a great company to work for, and have high ethical standards).