One thing seems to be missed here.Nobody on HC has a clue about...

One thing seems to be missed here.Nobody on HC has a clue about how the warranties are worded, what the warranties apply to and why there was a need on the part of SGH to have the warranties in the purchase agreement in the first place, so on that basis everyone on this thread are purely speculating, both SGH and Watchstone holders.
With regards to due diligence, it is only as good as the information available at the time, and if that information turns out to have been falsified then there could be grounds for legal action.
I do feel that SGH has not just come to this decision overnight, but have been pursuing this line for some time (pure speculation on my part) and are savvy enough to know when they have a case to pursue and wouldn't waste time and money pursuing a hope and a prayer just to make AG feel better about it all. Rant over.

Christopher