Business 2.0, who if memory serves me correctly broke this story, has an excellent article by Thomas Mucha on the Kryptonite drama.
It serves as a good example of poor crisis management.
“I won’t be backed into an apology,” Kryptonite’s public relations manager Donna Tocci replied when I asked her if the company is sorry about what happened. Worse, the company’s main strategy seems to be centered on deflecting blame. “This is not just a Kryptonite problem,” Tocci repeatedly said. “It’s a concern with other companies in the industry. At this point Kryptonite is the only company that’s addressing its consumers’ concerns.”
In fairness to the Kryptonite PR people, crisis management is a function of the entire company and at this point we don’t know if management are simply ignoring good advice..
Murphy's Law 