Larry, you said:
On the other hand it has probably halted the capacity for
continued important PRLN research such as using the proprietary screening technology to isolate some derivative from the Chinese herbal library which will cure the insanity which has afflicted current and past PRLN management.
Larry, you've always been very witty and I did get a chuckle out of this. However, I wouldn't lump Babish's and Campbell's behavior with Rhodes' insanity. No one commented on my analysis of the record of Paracelsian versus Babish. Perhaps that's because it was too long and people didn't have the time to read through it all. Or perhaps it's because they disagree with it and they think it's a piece of crap and they are being too polite to say so. So I will boil my thesis down to a few simple sentences. The evidence for this case is very weak. It looks like the sole purpose of this case is to gag Babish and prevent him from speaking out about the Rhodes' illegal activities that have wreaked havoc on the company. I think it is a nuisance lawsuit that was brought in response to charges of illegal activities.
One might criticize Babish for being too greedy in contract negotiations. He was making over $150,00 a year and he wanted $220,000. If you can't get by on$150,000/year then you just aren't trying. But I think this was about more than just money. Babish was undoubtedly working in a hostile environment. I bet he and Rhodes got into a lot of shouting matches after his charges of Rhodes' impropriety. I bet Rhodes did everything he could to make Babish's life miserable. I don't know. Perhaps Babish really was greedy. But I bet a good CEO could have kept Babish on without a raise if he had treated him with respect. One way Rhodes could have shown Babish some respect was to register his warrants so that they would have some value on the market. This is the least Rhodes should have done, because he had an obligation to do so as payment for past services that Babish had rendered to the company. If I were CEO I would have told Babish that the company could not afford to give him a raise because the company was strapped for funds. I would then have frozen all salaries because if Babish could not be given a raise, then no one should be given one. If this did not appease Babish then I would have said the following to give him an incentive to stay:
We can not pay you cash. However, we will give you an incentive for continued good performance as measured by the share price two years from now. The share price is now $2. For every dollar that the share price rises, we will give you 10,000 shares of stock, up to 200,000 shares. If the price is $12 at the end of two years, you will get 100,000 shares of stock worth $1.2 million.
I am convinced that Babish could have been induced to stay by a CEO who was not intent on fostering a hostile environment. I think Rhodes wanted to create a hostile environment to force Babish out because he was making trouble with his charges of illegality.
I could be reading this wrong. Perhaps Babish was truly greedy and would have rejected this offer. But we will never know. It would be nice for Babish to be able to speak out about why he acted the way he did, but the nuisance lawsuit is preventing him from doing so.
There is also one major difference between Campbell's lawsuit against Paracelsian and Paracelsian's lawsuit against Campbell. Campbell is paying for his lawsuit out of his own pocket. Paracelsian is suing Babish in the name of the company. That means they are using the company's funds to pay for the lawsuit. This is stockholders' money. This money comes from your pocket and my pocket. And they have the gall to say they are pursuing this for the benefit of the stockholder. That is why I am so pissed. DAMN IT! I have a right to hear why this company has fallen apart and they are using MY money to keep me from hearing the full story of what has happened. Maybe Babish would try to mislead me with lies and half-truths if he were free to speak. But then I would probably be able to discover that they were lies and half-truths by asking him some hard questions. On the other hand, maybe he would tell us the truth and Rhodes is afraid of us hearing the full story. I think this is what is really happening. I think this is the reason for the lawsuit. And they are doing it with MY MONEY. And that's what got me pissed enough to spend all that time working on my analysis of the case.
Robin |
