To: Bill Lin who wrote (53147 ) 4/20/1998 7:44:00 PM From: Jock Hutchinson Read Replies (3) | Respond to
Dear Bill: you certainly addressed many of the issues I raised, but there is one issue that you overlooked. And your overlooking the issue is the classic example of what most potential litigants do--go into denial. I have never seen any Iomaniac on this thread give any kind of figure he or she would be happy to see Iomega pay in the upcoming lawsuits unless they truly expect IOM to prevail. Instead, they have kept their commentary to anti-lawyer jokes. Bill, the fun stops at the courthouse door, and this ain't bean bag. You have clear manipulation of the stock price by the former CEO of the company. The fact that he is the former CEO is meaningless. There are huge potential losses out there as the result of his alleged conduct. Again, I ask why would any company interested in taking over what is clearly a valuable installed base of 13+ million "razors" be interested in a company with an enormous legal problem. And what is going to happen when a jury verdict comes in. I would really like to se some sober numbers from the members of this board rather than directing their sarcasm at Rocky. Folks, if you own IOM, you own a whole bunch of lawsuits. And once again, during the CC the Corporation Counsel did not even raise the issue. IOM probably needs to set aside at least $250 million for settlement. And Bill, creditors don't take raw materials for payment. They take cash. Where will the money come from? IOM can go BK or they can issue something like 150 million additional shares, thus diluting the share price by about forty percent. Of course that would generate additional suits. I am not just talking smack. This is very serious business. I would really like to hear some direct forthcoming statements from the company on the issues. Without the lawsuits, IOM could be an OK buy. But once, again why would you want to buy into a lawsuit that could result in the dilution of your shares by forty percent?
