Julia/J.,
Anybody can file any number of lawsuits against almost anyone. Shareholder or former shareholders or people who wanted to be shareholders or people with red hair can file a 7, 10, 100 or 1000 point complaint claiming damages. I've got another stock in which ONE shareholder is starting a class action suit demanding some $100M plus. I talked to my attorney and he noted there is a class of attorney who go after companies when their stock prices falls or an opening is seen to gain some $$. (These attorneys are similar to personal injury attorneys, and well and poorly motivated (mercenary) attorneys exist within this group as in personal injury.)
For GIFS, the lawsuit reads to me like a tactic within an overall strategy to get GIFS to pass over some bucks because of a prior management's actions. This is not a new tactic or strategy. My other stock looks like it will settle the nuisance suit for $5 or less, with at most $2.1 going to the shareholders in the class action. The rest goes to lawyers for expenses first (copying, filings, depositions, research, etc), and second, for professional services.
While emotionally I'd like GIFS to crush the bozos behind the suit and destroy a few portfolios based on taking from me and other GIFS investors, I can also see the benefits (time, fewer $$, distraction) of paying them off and getting on with other business.
Lawsuits are concerns, not reasons to panic.
And the adventure continues... |
