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Technology Stocks : IMPX - When Will the Dead Money Awaken? -- Ignore unavailable to you. Want to Upgrade?

To: slob who wrote (155)	12/20/1997 2:08:00 AM
From: lml	Read Replies (1) \| Respond to of 532

Slob, The point of these class action suits is to make lawyers money. The lawyers do this by latching onto most often weak claims of shareholders who have suffered losses in the market but who would otherwise feel better about themselves if they could blame someone else for their losses. Along come the lawyers to fill this need. They offer retribution & solace to these "oppressed", only to fleece the sheep again by laying first claim to & the lion's share of any settlement. [Only on rare occasion do these actions lead to trial & award of damages.] Why do the claims for damages exceed the networth of the Company? Without commenting on IMP's net worth, which has dwindled to present levels, lawyers sue (on behalf of plaintiffs) for as much as possible. Why? The larger the claims, the greater the threat, regardless of likelihood of a favorable outcome. If punitive damages are sought, the statute often permits the award of treble damages. Net worth of the defendant is for the most part irrelevant. Consider OJ's defense in the penalty phase of the civil trial. Your are correct that the majority of these suits are really a waste of time. Only winners are the lawyers. One class action in which I was a member netted me $.04 on the dollar 10 years following the events which gave rise to the class action. Believe me I didn't hang around by the phone or mailbox for 10 years waiting for "justice." I took my tax loss that year & moved on.