22nd Century Group Inc (XXII)

[Justfactsmam]

...without looking at the papers filed in the suit...I am assuming Board has discovered more than "insider trading" violations regarding Joey. Perhaps through his conduct it has come to their attention that Joey has or attempted or conspired to compromise XXII's business, relationships and/or stock. ( of course, speculation on my part) We will know soon enough.

I would imagine it to be more positive news, then negative. The reason 6 fold:

1. Stops and would eliminate substantial expense (severance payments, including stock options)
2. I would assume counter-claim would request a TRO, temporary restraining order on Joey, to prevent his selling more shares, until determination is made if he breached his fiduciary duties.
3. Substance of Board's allegations being upheld by court would likely also be cause to remove Joey from the Board (and inside information).
4. Clear demonstration to Chinese of "nail in the coffin" for Joey and relationship with the company is really terminated. (termination not a ploy to get Chinese to sign agreement).
5. Counsel will engage outside Law Firm and he will "supervises" case brought on by outside law firm. It will take "some" of his time...but not all of his time, so he can focus on biz end.
6. In the end, cooler heads generally prevail (cost of litigation for Joey will be substantial) and parties will compromise and settle. Just "ain't" worth it. (might even include a buy-out of Joey's remaining shares by company, investor, fund, company (controlled publicly, sovereign or privately held)

And wild guess...likely Perker has info to support board's decision and is cooperating...