IMPX - When Will the Dead Money Awaken? Message Board

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Technology Stocks : IMPX - When Will the Dead Money Awaken?

IMPX 4.960

-5.7%

Nov 6 9:30 AM EST

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To: slob who wrote (157)	12/20/1997 2:30:00 PM
From: lml	Read Replies (2) of 532

Federal Securities Laws, & the Federal Rules promulgated under these Laws exist to protect (or promote) the integrity of the securities markets. Rule 10b-5, insider trading, is probably the most infamous rule; Rule 16b, short swing trading by directors, offices, significant shareholders, is another. These rules exist because on occasion, there are those who will take advantage of material non-public information and trade securities based upon such information to the detriment of the other side of the trade. State securities laws also exist, usually to supplement Federal Laws where state legislators have determined Federal Law insufficient. Bottom line to your question, the law supports these class actions. They exist to protect those investors who are truly defrauded or victimized based upon another's insider information. What you are focusing on is the ability to FILE a class action regardless of the merits simply because a member class which has suffered a monetary loss can be identified. The action is based upon the ASSERTION that the company's management was not forthcoming with unfavorable info before it became public to the markets. Whether management KNEW of this unfavorable info is what must be PROVEN for the action to succeed. Its one thing to ASSERT; its another to PROVE. But that doesn't stop these actions from being filed. Plaintiffs hope is that defendant companies will quickly settle (usually with liability insurance proceeds) just to have them go away & allow the Company to continue to focus on its business.

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