While those type of notes are almost predatory they are common in this type of market. These type of lenders want harsh guarantees. The last thing one of the lending specialists wants to explain to his boss is why he lost money on what seemed to be a very very risk investment.
Flashback to July 2015 when Seth stepped back in as CEO, there was about to be a Pilus deal consummated. Of course no matter you do you will be criticized, some dopey disgruntled shareholders actually wrote Seth emails stating that Pilus was a scam. This despite Cowan Gutenski sending 2 people to Pilus for 3 days doing a valuation of the patents.
Flashback to 2015 Seth was in talks to merge with a 3D printing company that wanted to go public. That company had diverse range products including medical devices that would be great for big Pharma. A private company at the time, looking for seed company and a partner from a few big Pharma. That merge died because of Cowan. Seth would have stepped down as CEO and shareholders most likely would have been very happy as that companies revenues exploded.
Most people do not have any idea of the number of rules and negligence claims wrapped up in this suit, and every one that is directly attributable to Meyler is duplicated to the managing partner and Partners of Cowan.
The following statements could be attributed to Cowan's silly defense;
Some people think that's TAUG's new auditor had to redo the 2014 audit before the SEC ruled that audit determined the audit unlawful, they are wrong.
Some people don't realize that Cowan had a duty notify TAUG immediately once the PCAOB notified them of the discovery of the independence breach, that was not a breach that could be cured.
Some people don't realize that After TAUG switched auditors they had a duty to notify the new auditor, after the new auditor contacted them, of the independence breach and that they agreed to the finding of the independence breach by Cowan. Cowan's own internal rotation sheet shows Meyler violated the rule. Meyler's email to Seth stated he violated the rule. Meyler is going into court with a document he wrote admitting the violation. Meyler didn't think it was a violation until the censure came out though.
Some people don't realize that Meyler worked on 2015 despite knowing he was in violation of 2014, and lied about it under oath several times.
Some people thought that by Cowan throwing another auditor on the case they could reissue 2014 despite clear rules prohibiting it.
Some people think that by Cowan throwing another auditor on the rotation sheet for 2015 they could perform work for 2015
Some people think that Cowan was owed money and that is why they initially withheld the work papers from Cowan before the censure came out, how could you owe money for unlawful billing?
Next, how could Cowan accept the 25k and state they were independent and reissue the 2014 if they were owed a significant amount of money? Can't have it both ways.
Next, after the censure, Meyler changed his tune as to why he was not transferring the work papers to KBL.
Some think that the mediator did not threaten Cowan to return the work papers.....
Some think maybe a website created after the workmpapers were returned and exposing what scumbags mitigates the damages Cowan did, good luck with that LOL
Some think a letter to the court exposing Meyler and Cowan lying in their affidavits will mitigate the damages.
And here is the funniest one, that the BOD of TAUG was responsible in part for the damages, watch that one get laughed out of court. That will be one of the defenses dumbest moves to a jury, almost as dumb as stating the lawsuit against Cowan shouldn't fly.
UMMMM. Lost in all these boilerplate defenses is the fact that didn't the insurance company already admit to liability way back, the only hope they have is mitigate. How do they mitigate punitive damages? HOw do they mitigate The insurance company's involvement in not transferring the working papers.
I saw a good slogan the other day, it went something like this -
There are none so blind as those that don't can't see the facts in front of them.
I will be at jury selection, will you
