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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: NightOwl who wrote (77449)	8/15/2001 1:55:57 AM
From: Bilow	Read Replies (3) \| Respond to of 93625

Hi NightOwl; The complaint I typed in parts of is the Miburg pleading. Or at least they're using the same plaintiffs, LOL. Re: "At any rate damages won't reach the billions and billions dreamed of by class counsel." This depends on how long people tend to hold stocks, and how long RMBS was at a high price. They say that the average share is held for 6 months. If that were the median length of time a share is held, the total losses would be at least half the $11 billion. I should explain. RMBS was above $40 per share for more or less a year. In order for a share to not contribute to a loss of $40 - $10 per share, it would have to have never changed hands during that time. If the median share changes hand every 6 months, at least half the shares would have changed hands during that time. There are 100 million shares total, so half of them would be 50 million. That many shares would generate 50 million x $30 = $1.5 billion in damages. I'm guessing that actual damages will be something like twice that or so. Of course not everyone who responds to the class action lawyer letters chooses to be a member of the Class. But if 50% of them did, that would mean $1.5 billion worth of damaged stock losers, and they would therefore get about 7 cents on the dollar if the insiders keep their cash, and maybe twice that if the insiders are emptied. Re: "A very small minority would have held for the ride all the way back down. Certainly nobody reading this thread." BWAHAHAHAHAHA!!! That's a good one, LOL!!! Basically, there are two kinds of losers. The ones in denial are hanging around here and predicting that the bus will rise again. The ones that aren't in denial are trying to avoid thinking about Rambus any more than they actually have to. In addition to those two sorts of losers, the ones who actually made money are (human nature being what it is) likely to hang around and tell us all about it. Another example of a trader is Zeev Hed. He traded Rambus for both wins and losses. I don't know if a class action settlement would allow profits to people who were on the wrong side of short term trades when, overall, their trades were profitable. Any idea? -- Carl

To: NightOwl who wrote (77449)	8/15/2001 2:09:18 AM
From: Bilow	Respond to of 93625

Hi NightOwl; My favorite line from the incriminating documents quoted in the shareholder lawsuit: "Rambus expects to prevail in this litigation and to be fairly compensated for the use of its IP." milberg.com -- Carl

To: NightOwl who wrote (77449)	8/15/2001 2:32:39 AM
From: NightOwl	Read Replies (1) \| Respond to of 93625

Well,... there is one more thing I would like to know. How will this change the litigation strategy of IFX, MU or Hynix? To date they have fought RMBS' desire to delay and have had no reason to talk settlement. But these class suits give them much more leverage than they had even from the March 15th and May 9th Virginia rulings. The class suits up the ante for RMBS and its management. They involve a far greater risk of death than do the fraud and anti trust claims of the memory guys. If RMBS management cares enough about the potential liability - depending on where the policy was issued, defense costs at least initially, may be covered by insurance - they should be willing to listen to reason now. If so, the three Fabs may be willing to consider a global settlement wherein one or more of them contribute something, say $30-50 million, to a settlement fund to benefit RMBS class members. RMBS comes up with say $100 million and the individual defendants kick in say $55 million. The settlement would provide that the Fabs drop their suits and get all RMBS' claimed SDRAM and DDR IP in exchange for their $50 mil payment. The RMBS defendants get an end to all suits against them and dismiss all SDRAM/DDR suits/claims everywhere. More to the point they get to survive to make try to get DRDRAM off the floor. Class members and their lawyers get @$205 million. Yes they will want more. However, they aren't crazy and know they will get no more than the defendants can pay. So the Defendants would have to provide financials sufficient to show that they can't pay more. ...And probably agree to sign over book, TV and film rights... I don't know how much cash the Defendants can put together, but I know that whatever the number is now, its going to continue to decrease as long as all these suits go on. Again. What I don't know is the true value of RMBS IP on SDRAM/DDR. Is it worth anything to MU, et al., to forego these suits and pay RMBS class members instead of their lawyers? And if not them, then who else might be willing to put a material amount in the kitty to get this done. INTC perhaps? I don't think so. Not directly anyway. Although equity would suggest they should since this Fraud couldn't have flown without them. But then that's probably the very reason they would be loath to contribute. Anyway, if there is going to be a RMBS three years from now, its going to take some sort of settlement like this to get it done. The real question is whether or not anyone besides the RMBS Longs wants it to survive. 0\|0