Hi Linda!
While I don't know about the percentages involved, securities class action lawsuits are filed all the time, especially when a stock takes a precipitous fall in price. It could be that Zona's fall of late '97 caused a knee jerk reaction in some firms to investigate the possibility of a suit. It could be that Asensio, or others in his cabal, have contacts with some of these firms and they sometimes act in concert. The first firm to file may have the inside track in being lead attorney, so that could be an incentive to offset the disincentive of expenses laid out if the suit is unsuccessful.
Some of these suits turn out to have merit, others not. I remember last year a suit was filed against Citrix when its price fell. When they inked a deal with Microsoft and the stock roared back, the suit was withdrawn. The fact that no suit has been filed yet may mean that the attorneys who contacted you are uncertain as to its potential validity. They may be waiting to see if there is a NDA filing and/or approval. If there is, they will have saved themselves money and time by not filing a suit.
If a suit is filed, it may have a short term negative impact on the stock, but most investors understand that it may or may not have validity and it is to be expected. This stock will rise or fall based on the outcome with the FDA. My belief is that there is a better than even chance of a positive outcome. I also believe that careful reading of the discussion here over the past few months shows a sound scientific basis for Vasomax as a treatment for ED in a significant subset of the population.
I do believe that when everything is played out with Vasomax, there will be lawsuits and SEC investigations and possible criminal charges for stock manipulation. I could be wrong, but time will tell. |
