As Bill alluded, the process goes something like this:
1. Messageboard poster criticizes a public company or its management.
2. Said public company doesn't like its dirty laundry being discussed in public and, erroneously, thinks the best way to shut said poster up and deter others from seeing the light is to sue him/her.
3. Said poster (defendant), rather than get intimidated, gets infuriated and vows to fight said company (plaintiff) to the death.
4. Defendant calls various attorneys and gets average quote for $10,000 retainer.
5. Defendant, although stunned by the retainer, is still determined to teach the plaintiff a lesson.
6. Many many months pass, defendant forks over tens of thousands to pay for filing and answering various motions, yet the merits of the case are never discussed.
7. Meanwhile, plaintiff's messageboard becomes overrun by "bashers" who figure -- almost always correctly -- that where's there's smoke there's fire.
8. Plaintiff, having likely milked every last penny from dumping his stock, eventually agrees to drop lawsuit.
9. Defendant loses tens of thousands and is no better off than if he just filed pro se to get the lawsuit tossed out on jurisdiction.
10. Plaintiff's lawsuit, rather than shut up critics, ends up attracting the SEC's attention, leading to the company and it's management being nailed for securities fraud.
Verdict: Plaintiff and defendant lose; attorneys for both sides win.
- Jeff |
