Yeah, regardless of other aspects of Automattic's behaviour, flagging that an identically-pronounced single letter variation of their registered company name might be a confusingly similar brand for a third party commercial service specifically designed to customise Automattic's product to adopt seems to be at the reasonable end of trademark disputes...
I don't see how this is FUD. Both a sibling comment and my parent pointed out that there's more to the story than simply "claiming the word automatic." They provided extra context (which the article didn't).
I am merely relating my experience that stuff like this is common with 404 Media. They'll omit nuances - whether intentionally or just being shoddy.
They asked Automatic.css to change their name: https://www.reddit.com/r/Wordpress/comments/1omrtrk/automatt...
Automatic.css is a paid CSS framework specifically for WordPress.
Legally speaking I have no opinion here, but I don't think it's as out-of-pocket as it sounds.