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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: wiz who wrote (7501)	11/6/1997 4:25:00 PM
From: Tom Terf	Respond to of 14577

This would be about a $ 12 M settlement if they can prove intentional motive to fudge the results .. which I think they can. Insurance will pick up about 1/2 of it and the company will have to come with the other $ 6 M. However, it will cost about $ 3M in special audit and legal expenses as well over the next 18 months that this lingers on. So you are looking at about $ 10M, give or take a million, as the total Company tab on this fiasco. The lawyers will keep about 30 %, so the 50 M share holders will get about $ 8M which equates out to about 0.40 per share maximum. But this payout will be in about 2 - 2 1/2 years from now. There will definitely be a suit ..and when it is announced by S3, the stock will drop about 5/8 - 3/4 that day. So you may receive as little as 0.20 and as much as 0.40 per share depending on which period you were duped into buying the stock.