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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Linder who wrote (56336)	6/18/1998 10:38:00 AM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 58324

IOM and most other large public companies carry directors and Officers Insurance which will pay for a legal defense against class action law suits. Oh boy, that's a comforting thought. KE is having his legal bills paid. You are absolutely right. So what. It's the award that counts. First, as a matter of law, punitive damages are not insurable in any state that I know of, and these suits could easily include an award of punitive damages. Stock manipulation may also not be covered under certain insurance policies. Finally, this "flea" could result in an award totaling over a billion dollars effectively bankrupting IOM. How? You have 250 million shares, and the stock has tanked on average six points since the KE manipulation began. That's about $1.5 billion dollars right there. I would suggest that some of the more vociferous members of this board look into becoming members of the class rather than spend their time defending the actions of KE. Your analogy to General Motors is of course utterly irrelevant. That was a product liability issue. This is an allegation of stock fraud with some horrible results that have damaged the lives of many of those who post on this board. Moreover, why would some company want to pay anything more than one times sales for a storage company? That's a fair price for a company like Seagate. That's about six bucks a share, thus insuring a loss for everyone.