The shareholder lawsuits against LEAP actually dealt with whether or not LEAP Wireless International materially misled investors regarding the value of various spectrum licenses held by the company. Claims were made that, in spite of knowledge that licenses were, in fact, rapidly declining in value, management grossly over estimated and reported these inflated values, causing shareholders to hang onto their investments when they might have otherwise sold.
As you've mentioned (in a separate, but related matter) the fact that management was unable to prosecute 'widespread' subscriber fraud only further indicates executive incompetency and negligence.
All in all, one has to question who made these jackasses executives at this company??? Once one realizes these are actually very capable, intelligent, shrewd businessmen, then one begins to understand the degree of carelessness or criminality that may be inherent to this particular company or industry. Deciding whether or not to try the case, as you've pointed out, is, unfortunately, often an economic or political, rather than legal decision. And then, we all may suffer for the misdeeds of a few.
It is difficult to get credible witnesses to come forward when all directly involved may have profited so heavily. |
