<<Most attorneys are scumbags. I can not remember when I have gotten 1 penny back from a class-action lawsuit, and I've been in 5 of them. All the money goes to the attorneys. Leeches.>>
While I don't do shareholder derivative suits, and don't generally care for lawyers, don't miss the point in these types of lawsuits. They aren't designed to compensate each individual for their full loss but rather to spank the company for wrongdoing and thereby stop them from doing it again. That there is some compensation for the shareholders is a plus, but really not the point of the suit.
And as far as all of the money going to the lawyers, it just seems that way. They seldom get more than a third, but a third of a big number is a big number. On the other hand, it costs a fortune to do these suits and they pay the freight, not that shareholders. If they lose the suit, and they sometimes do, nobody picks up the tab but the attorneys themselves. And if there was no such thing as derivative actions, what would exist to stop companies from jerking shareholders around at will?
For neon, however, I don't see where the company has done anything to warrant a suit. Having a bad quarter, and pre-announcing it, isn't illegal. It just sucks.
SHG
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