RE: 3/26/01 - [INVT] From basher suit to class action suit
Seems a similar situation has occurred with INVT. Recall that about a year ago, INVT was attempting to sue 14 posters (myself included) for defamation:
A Utah company has filed a lawsuit against as many as 14 people it accuses of trying to manipulate its stock price through a campaign of on-line insults...
...The company believes the chatters may have been "selling short", in effect borrowing shares that would net them profits if the stock price fell.
Among the offending remarks: Tekrules allegedly said the company "is a scam" and "is run by crooks." A chatter named Gogogadget called the company a "fraud," and DizzyG said InvestAmerica's stock had been artificially inflated through a "pump and dump" scheme - in which promoters hype a stock and then sell it before its price collapses....
Message 13784500
Note: The lawsuit was quietly dropped on 11/17/00.
Message 14901114
Interestingly, the company recently disclosed information a year after the fact, that appears to explain the sudden surge in the float. Follow INVT's timeline in terms of shares issued and outstanding. According to the 11-30-1999 10SB12G the float for InvestAmerica was as follows:
9,790,443 - 1999
sec.gov
Fast forward to 02-15-2000 - 10QSB. Take a look at this footnote:
(A) During the Quarter, the Company sold and issued 15,992,260 shares for $512,528 (avg. $.032 per share)
sec.gov
Note that there is no mention at all about these being Reg. S shares nor does it mention who the shares are sold to. Fast forward now to the 01-16-2001 10KSB with this disclosure:
Recent Sales of Unregistered Securities
Quarter ended December 31, 1999
On November 1, 1999, we issued an aggregate of 5,000,000 common shares (4,500,000 at $0.03 per share and 500,000 at $0.025 per share) to two investors in a transaction private in nature, relying on the exemption from registration in an "offshore transaction" pursuant to Regulation S promulgated under the 1933 Act and/or Section 4(6) and Rule 504 of Regulation D promulgated under the 1933 Act.
On November 24, 1999, we granted an aggregate of 6,150,000 options to purchase shares of our common stock to 1 employee, 1 consultant and 4 directors and officers. The options were granted at an exercise price of $1.20 per share, are exercisable until November 24, 2004 and were granted to the employee, consultant and officers and directors in a transaction private in nature, in reliance on Section 4(2) and/or Rule 506 of Regulation D or in an "offshore transaction" pursuant to Regulation S promulgated under the 1933 Act.
On December 7, 1999, we issued an aggregate of 3,000,000 common shares, at a price of $0.5566 per share, to 28 investors in a transaction private in nature, relying on the exemption from registration under Section 4(2) and/or Rule 506 of Regulation D promulgated under the 1933 Act.
On December 11, 1999, we issued an aggregate of 4,740,000 common shares, to Daniel Tepper in settlement of outstanding litigation, relying on the exemption from registration under Section 4(2) and/or Rule 506 of Regulation D promulgated under the 1933 Act.
On December 21, 1999, we issued an aggregate of 8,148,555 common shares to 12 investors in a transaction private in nature, relying on Section 4(2) and/or Rule 506 of Regulation D or in an "offshore transaction" pursuant to Regulation S promulgated under the 1933 Act.
sec.gov
It appears that investors were unaware of the nature of these Reg. S shares that hit the market in Jan. and Feb. of 2000. In fact it was almost a year later until InvestAmerica disclosed that the 15million+ shares were all sold to unknown parties in offshore transactions as Reg. S deals. Further, it appears that the increase in the float for InvestAmerica coincides with the rather dramatic increase in Share Price and Volume in the Jan. 2000 to March 2000 timeframe(Please see chart).
bigcharts.com
Additionally, InvestAmerica appears to have stepped up its PR effort during this timeframe as well. See Link:
opticacommunications.net
Alas, it appears that the tide is now turning as the bitter reality is finally sinking in:
By: DMAJR $$$
Reply To: None Monday, 26 Mar 2001 at 11:34 AM EST
Post # of 136069
To All:
PLease let me know which board member is thinking of organizing a class action suit against invt. No doubt in my mind that we have been ripped off. Going on 17 months now and what does the company have to show for itself--NOTHING. Oh I forgot we have zed with its 20 million dollars in revenue--what a joke. Doesn't even do 1 million a year. Doug Smith should be thrown in jail for that one. Hey all you crooks at invt I hope you read this and I hope you all end up in jail.
ragingbull.lycos.com
By: duraace
Reply To: 136062 by DMAJR $$$ Monday, 26 Mar 2001 at 11:51 AM EST
Post # of 136073
DMAJR- ditto. eom
ragingbull.lycos.com
By: tekrules
Reply To: 136063 by DMAJR $$$ Monday, 26 Mar 2001 at 11:55 AM EST
Post # of 136069
DMAJR - NO DOUBT ITS A SCAM
I was saying that over a year ago. Then the scam artists tried to quiet me by naming my alias in a lawsuit. That should have really given credence to it being a scam.
Why the heck would some two bit company name 12 people in a lawsuit? They were trying to quiet them down!!!
What a SCAM it was!!!
ragingbull.lycos.com
By: wadgras $$$
Reply To: None Monday, 26 Mar 2001 at 12:01 PM EST
Post # of 136082
DMAJR - You can join my suit, but I get to be lead plaintiff, OK? However, you'll have to be patient, b/c I'm giving these guys three more months (end of June) to get their azzes in gear and prove that they are in the business of selling something other than Reg S shares. I've had preliminary discussion with one of my securities litigator buddies and, based on the skewed factual scenario I presented him, he had a large smile on his face.
ragingbull.lycos.com
Looks like the "bashers" were right after all. The most disturbing aspect of all of this is that INVT had the gall to file a lawsuit claiming "defamation" and "short selling". It appears that the lawsuit was nothing more than a ruse whose sole purpose was to divert attention away from the "real" action occurring with the Reg. S shares.
Diz- |
