Run Up,
Are you sure about this? I've been checking the news wires and haven't seen anything about it. Could you please provide a link?
To answer your question, at this stage of the game the filing of any stockholder lawsuit would mean very little (except for some additional legal fees).
If a stockholder suit has been filed it really should come as no surprise. The only surprise is that it may have come this soon.
The fact is that if a stockholder has purchased securities on the basis of false and misleading info provided by a company, he or she has a cause of action against the company and/or its officers and/or directors for losses incurred.
It would seem however that a suit at this stage is clearly premature. lacking in credibility and should not add to your worries. Look, either Solucorp has done something wrong or it hasn't. If it has w'ere all screwed and you might consider joining in a lawsuit yourself. If it hasn't, then the SEC action and any frivolous law suit will prove to be nothing more than blips on the radar screen.
It would be interesting to find out where the suit was filed to see just how specific the allegations are. If the complaint merely "parrots" the general language of the SEC release, then I would not at this point be at all concerned. I would then consider it totally frivolous, speculative, and premature. For example, clearly no damages have been incurred - at least not yet. Who knows, when SLUP eventually resumes trading it could very well open to the upside negating any claim for damages.
There are at least two possible explanations for filing a suit now. It could be the handywork of some clever lawyer positioning himself to reap the fees of a possible class action if things eventually turn out badly for SLUP's shareholders. It could also possibly be used as a tool by some concerned investor to discover just what the specifics of the SEC's concerns are.
If on the other hand, the complaint contained very specific charges and examples of alleged false statements by SLUP this would be more worrisome.
Run Up I know that you and the two other investors you represent are heavily invested in SLUP. So am I. So much so that if this matter is not resolved in SLUP's favor, I will forced into filing for bankruptcy. For now, all we know is that someone at the SEC had some questions about SLUP's filing and other public information and that Solucorp has issued a statement that it is confident that it can satisfactorily address those concerns. There's very little you and I can do now.
For what it's worth, I spoke with the Company today and they really do seem relaxed and confident. I was told that "Solucorp has nothing to hide". |
