That ended up being settled and somehow blamed for billions and billions of shares worth of dilution. However some of those shares actually went to pay off the CEO's personal debt to his pal Jared Hochstedler, as indicated in this deposition by JH.
Share sales also bought the CEO a NASCAR truck race team in 2010, the same year they did a 1000:1 reverse split because he'd diluted it to no-bid.
Here's the first page of the atty opinion letter regarding Fairhills/E-Lionheart's 504D
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