I am sure Gray Stern would not be happy.
Rumors like this can be damaging for business
Absolutely - Unfortunately, this sort or rumor would most likely come from a competitor, or someone deliberately orchestrating a smear campaign. A similar rumor was doing the rounds last year (from memory) and was documented on several forums. Again, it was found to be untrue.
Gary Stern is a great survivor in the industry, so he would be used to hearing the rubbish thrown at him by industry people. Problem for the persons starting the rumors is that Stern is still making pinball. In fact, a positive rumor is that Stern are planning to rerun "Harley Davidson" .
I'm sure the guys that have been to stern's factory will agree, it is worth the trip to see how a Pinball is manufactured.