Doug.....I don't blame you for being P.O.'ed..... I feel like an idiot, myself.
There will undoubtedly be litigation.....this one is too good to pass up. I would expect the case or cases to be filed this week. The price fall received too much publicity. It made everybody's bad list for the day. The only trouble the class action lawyer will have in this case is finding a shareholder to be the class rep. The stock is pretty thinly held.
It will be a miracle if no class action is filed. The problem is that the typical settlement in this type of litigation returns only about 8%-10% of the damage, net of fees, and then only to the shareholders who bought during the period the information was misrepresented......in this case from the conference call to now. There can be other incidental damages to holders who bought outside (before) that class period, but not much. There's really not much in it for the shareholders.
I think Floyd commented upthread on the IOmega warranty service call (service charge) suit settlement. I am familiar with that suit. The judge in the Delaware Chancery Court reduced the plaintiffs' class counsel fees from $600,000 in the negotiated settlement agreement, to $300,000, if I recall correctly. (Or, to $250,000, if Floyd recalls correctly.)
(Offthread, and by the way.......has anybody had the "Click of Death" on their Zip Drive ??? The drive clicks about 25 times, and then fails, corrupting the disk along the way.) mcd |
