I would go further than say "misrepresentation". I don't know where Shuttleworth got that version of events, but it is so radically different to the public record and so offensive in content it deserves either good evidence in favour of it or a public apology.
And the argument just doesn't make any sense. "Oracle were so hurt by the fork that they laid off their active development team and now the project is much less active" is a ridiculous notion. Were Oracle really so bothered by ~20 or so hackers of varying skill that they immediately laid off their 100-strong team?
And the "factionalists" who caused this, who are they? I imagine he's talking about people like Michael Meeks, who is a deeply admirable fellow (whose company I've had the pleasure of a number of times) who I'm sure was key to the split.
Call me a conspiracy theorist, but Meeks is also the author of a particularly well-argued piece on Contributor Agreements and why they don't work well. I find it strange and co-incidental that Shuttleworth would fling some random poo in his direction at the same time while he's trying to talk up his Contributor Agreement project "Harmony".