I would read this board if I were them. Lots of good info here.
Perhaps the best part is in talking publicly amongst investors and being educated about realities of the market. So for a chip shot in that effort I say it looks here like the Winthers strategically screwed the pooch, bagged the shareholders for the bill, and set up a side deal to keep their kid, Kyle employed.
This one is like a law school spot the issues test. One big one is whether officers of a publicly traded company can circumvent their fiduciary duties and duty to shareholder loyalty by turning down a potentially business saving unsolicited offer, choosing instead to liquidate after negotiating a sale of assets that did little more than secure future employment for a family member.
The decision to sell to Ply and liquidate would hold up under any variation of the business Judgment rule Rule. The unsolicited offer has to be weighed against the prospect of what, a self dealing failure?
So the dance of destruction continues. Shareholders bring an action on behalf of the corporation to sue the corporation and its officers. Current corporate counsel will likely stay as corporate counsel, but the Winthers will need to lawyer up again. Possibly they have insurance that will provide a defense.
So ultimately any money that might have gone toward close out now goes into lawyers. Do we pierce the corporate veil and hold the Winthers personally liable? We got enough to get into the court house but we still might not win.
Thus, are we Destroyer or simply destroying ourselves and others for the sake of vengeance and spite?
BTW I enjoy weed and I invest mostly cannabis companies. But as you know the quality of a man lies not in his opinion of any one thing but in his opinion of all things.
Pot is a divisive issue for many, but most vape companies are downright pot friendly.
