If Kantor is dishonest, he's dishonest. I don't know if the board can be blamed for that. Always easy to say more should have been done in hindsight. In hindsight for Kantor, he probably shouldnt have IPO'd - I bet he's really regretting it.
You're right they should have changed passwords themselves but you don't expect people are going to sabotage out of spite. That's super immature and just plain stupid. Kantor will realize his mistakes and settle this case, I believe. It would truly be his biggest mistake not to.
I believe the IP deosn't relate to the Roam-E directly as they wanted to build a translator system. However they may argue that some of their funds went towards producing its. If this is their case I believe they cannot claim the Roam-e IP, only the funds lost and damages in the process.