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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mike 2.0 who wrote (6157)	3/2/1999 11:42:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 78481

Mike, I covered both categories of your first paragraph in my post. In accounting debacles/fraud, that issue in and of itself is far worse than the minor consequences of the shareholder lawsuit. Your second paragraph deals with suits from clients for non-performance of a purchased product. As you point out they are not to be taken lightly. Recovery could be the entire amount of the software purchase price, plus damages to the business if provable, plus possibly punitive damages in remote circumstances where the supplier willfully and demonstrably failed to address problems their software caused a business in a timely and appropriate manner. Such suits if widespread could have catastrophic consequences. Even if they do not it certainly suggests significant problems with the products, procedures and management of the supplier. I would tend to avoid such a company as the risk, including the implied possibility of other lawsuits, is difficult to assess and quantify.