Spider,
Let me give it a try. Maybe I can make some sense of this for you.
For the sake of argument let's just assume that your version of Andy Mann's actions is 100% correct. Let move forward in time a little bit and we're now in the courtroom.
JUDGE: Mr. Mann, I order you to return the restricted stock to Amazon.
MANN: I can't your honor. The stock has been sold to literally 100's if not 1000's of legitimate investors. I don't have it any more.
JUDGE: Well, I can't make him return what he doesn't have anymore, so if the attorneys for Amazon will please tell me (in dollars) the extent to which Amazon was damaged, I'll offer a settlement in favor of Amazon.
QUALEY: Your Honor, we were originally supposed to get $1,000,000 for the restricted stock. So we're owed that much, plus the accumulated interest for failing to make the payment in a timely manner. And then we were further damaged by the short-selling in Canada which held down the price of AZNT stock and that has also damaged our shareholders.
JUDGE: The AZNT shareholders are not a party to this action, They are not represented in this courtroom. Therefore, they cannot be a party to this settlement. If they wish to file another suit to recover their damages, they are free to do so. The court cannot determine whether or not there was any damage to the price of the individual shares of AZNT because it is the nature of stock prices to fluctuate. Also, the restricted shares would have diluted the individual share price at the time the restrictions were lifted, which I recall Mr. Sylver said would be in 40 days after payment was received. So had the payment been received in a timely manner, the restrictions would be gone by now, and the stock in question would be free trading today. Therefore, I set judgement in favor of Amazon for $1,000,000 plus prorated interest.
MANN: Your Honor, I don't have a million dollars.
JUDGE: I didn't think so. You and the attorneys for Amazon will have to negotiate a settlement for what you do have...
Spider, now do you see what's going to happen? The judge isn't going to allow a short squeeze by Amazon. The shareholders' interests aren't represented in this case. The only party that stands to benefit if Amazon wins their case is Amazon, and that will be a monetary remuneration, not a short squeeze. And all of this hypothesis assumes that your version of the facts is correct and that the court will find in favor of Amazon. Neither of those assumptions is guaranteed correct. Hope this helps people understand what is happening here.
KJC |
