PARACELSIAN v.BABISH: AN ANALYSIS--PART 3.1
Hey, if Bill Gates can issue version 3.1 of his Windows program, then I can come up with version 3.1 of my analysis. I forgot to mention this point:
58. Information regarding the timing of Babish's decision to
resign from the company was material to proper valuation of the
stock, and upon information and belief, a reasonable shareholder
would have considered that information to be important in making
investment decisions.
As the learned scholar, Mr. Rogers, once said, "Can you say 'chutzpah', boys and girls? There, I knew you could."
Since Rhodes is now demonstrating his overwhelming concern for the stockholders' well-being, one must wonder why he didn't announce the resignation of Michael Gallo and William Warwick form the Board of directors. It is especially galling that he didn't announce Colin Campbell's resignation if Campbell's resignation caused the company to lose its ability to acquire more extracts of Chinese herbal medicine. And why didn't he announce Stephen Ip's resignation of his Vice Presidency earlier this year? And if he expected Babish to issue a news release announcing his resignation before he resigned, why didn't Rhodes issue a release announcing Arthur Koch's resignation until after Koch had resigned? One wonders whether we would have seen any news release about Koch's resignation if no one had posted the news release from the company that hired him on this thread. Did Rhodes issue his release announcing Koch's resignation just to cover his ass? One could argue that Babish was more important to the company then any of these men were individually, but it is not certain that he was more important than all of them combined. Let us assume, however, that his resignation was more important than all the other resignations combined and that Babish had a greater legal need to alert the stockholders of his resignation than Rhodes had of alerting them of the other resignations. If that is the case, then Rhodes' failure to negotiate in good faith with Babish over his contract and his failure to register Babish's warrants are that much more damning. His failure to do everything within reason to keep this key person within the company was a breach of his fiduciary responsibility toward the company, and for that he should be held responsible.
Robin |
