Compaq Message Board - Msg: 3636283

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Technology Stocks : Compaq

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To: zurdo who wrote (20221)	3/7/1998 6:06:00 PM
From: Night Writer	Read Replies (1) of 97611

Zurdo, Lawyers work on a contingent basis. The fees would be deducted from the award or settlement if any. Bad idea. Suing cpq is like suing your self. Company has to put up reserves for legal expense and possible payment of damages. This increases expense and comes directly out of any profits.. The discovery process is long, time consuming, and torturous. Management is distracted from their real job of running the company. This is an intangible cost. In the end many suits are settled to reduce the huge legal expense of defending the suit in court. Net effect is depression of the stock price, and share holders lose more in the market then they gain in settlement. Often the share holders get $.01 a share if lucky after legal expenses. NW

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