I don't know all the minor details, but maybe the CEO's ownership stake in the company that previously owned the air bag division was what made the sale to WATG go through.
Berkshire Hathaway would have looked just as colluded in the 70's with overlapping ownerships of subsidiarys etc...
Despite all the conjecture about ethical issues here all the typical investor can do is see if the fundamentals support a justifyable reason to make an investment. Unfortunately there is no way to know with certainty that there aren't "skeletons in the closet" with most stocks. Look at Enron etc.
You shouldn't have more invested in any stock unless you can afford to lose it unless you are totally certain about the issue.
The numbers WATG is reporting indicate a good chance this will be a runner, but nobody knows for sure.