Joseph,
Thanks for posting the lawsuit. It looks like a load of sh** to me. Two major flaws in their arguements which I will most certainly file an Amicus brief concerning:
1. Plaintiffs say the price was artificially inflated through May 21, when the numbers were officially revised. They never mention the May 15 warning of pending revenue recognition problems in their chronology. Any purchases after that day (or holding of existing positions), are based on the publically known fact that a problem exists and could be announced in the near future. That was sufficient warning for any prudent, nervous shareholders, and did in fact spur a wave of selling.
2. The lawsuit is concerned with Gorman's vested interest in his stock options, claiming that the class action period allowed him to keep the value of his holdings artificially inflated.
He never exercised any options during the period, nor did any insiders sell shares at the time. Since no defendants were enriched by the first earnings release, their alleged fraud and deceit will be hard to prove.
I wonder how a coordinated letter and phone campaign towards mssr. Green and his ilk would influence the proceedings? Enough current shareholders are being hurt by this harassment that a counter-suit should be recommended to NUKO's management. Perhaps a legal fund could be created for just such a purpose (or better yet, pro-bono work done on NUKO's behalf by any lawyers who happen to be shareholders)!
Anyway, the case looks weak, and any judge would be pissed if this case was brought into their crowded court docket!
Onward,
Peter Shaw
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