Some interesting history..
Owned this stock in 1997. A class action suit was filed because restating earnings was required. (I think don't really remember why) It was trading in the 9's at that time. Haven't checked on this stock for several years. Also I kept throwing away all class action documents received - they are a waste of time in my opinion.
The company was killed in the market obviously however in reading a final proof and release was very interesting. (JUST RECEIVED TODAY) SYSF filed chapter 11 on 3-24-99. The hearing on the settlement of $2,900,000 CASH and 5,200,000 shares was scheduled 3-30-99.
Looks like the lawyers got shafted. Doesn't hurt my feelings. Anyway current document indicates the class action will accept $250,000 plus the value of 5,200,000 shares prior to chapter 11. About .$0.34 a share or $1,787,000.. Since last financial showed only about $1,000,000, they must be making a little money. Anyway it looks like they knocked off about $2,700,000 of the class action.
Of course you could look at it another way. Why would lawyers accept reduced figures if things are going so well?
The document says 4-24-2000 is the rescheduled hearing date. Assuming normal speed of courts it will probably be summer or fall before any final decision is made. Then assuming coming out of Chapter 11, it would not occur until the class action in finalized.
So any play coming out of bankruptcy is quite premature. Maybe late this year of next year? |
