Livewire Ergogenics Inc (LVVV)

[Jason Coombs]

When the shareholder knows of the violations, deceptions and omissions then no, they cannot escape liability for knowingly distributing unregistered securities in violation of regulation.

But my point was that LVVV is liable, not necessarily the shareholders. So we're in agreement on that point. Except Curt Kramer, he obviously knew he was not eligible to continue engaging in his illegal activities and probably should not have been allowed to invest at all even if he never sold his position.

LVVV has the right to refuse the lifting of restricted legends when shareholders attempt to sell. The transfer agent will notify LVVV whenever a Rule 144 sale is attempted, and if the company knows its shareholder is not eligible to rely on Rule 144 then the company must refuse the request. It is then up to the shareholder to fight for that right if they believe the company is mistaken or has no right to block the unregistered securities from public resale.