Hangover Joe's Holding Corp. (fka HJOE)

[thesmalls]

That is an interesting conundrum you have netered into with your argument. Do you understand what fiduciary means? IF they were delaying the filing (or just not being overly aggressive in dealing with the auditor situation) to prevent conversions from taking place - who does that benefit...? It certainly WOULD benefit the company AND more importantly the shareholders. Isnt that their most basic role as fiduciaries? If the argument is those conversions were going to once again wipe out shareholder value through aggressive shorting (most of it naked) - wouldn't the SEC have to nod to protecting the shareholders - especially when their auditor was suspended BY the SEC? SO - in acting as fiduciaries in this situation - they would be acting morally as well.

Now - the legal component is a little stickier. Again - it is up to the SEC to enforce the R&R but they are in place to PROTECT the outside shareholders FROM these very tactics. In civil court - the financiers can only argue damages by NOT being able to cover their short positions - how is that a damage of the original loan agreement? It is a perversion of the agreement. If the company pays off the loan amounts per the terms - the financiers cant justly argue damages for the perversions. If they want to argue penalties - that is a different story. However, with a suspended auditor and the financiers having made a sizeable return already on the original loan agreement - how sympathetic will a judge/jury be to further compensation?