Sunday, April 02, 2017 8:28:38 AM
The cases are very different.
In Learner, investors are suing NWBO for stock losses based on NWBO actions. The plaintiffs are asking for certain buyers of NWBO stock to be compensated for stock losses.
In Yonemura, NWBO (via owners) are suing Cognate and LP for damages from alleged self dealing. They are asking money to be returned to NWBO from Cognate.
Even if the events in play are the same, the nature of the lawsuits are very different.
Suppose in some other case it is 100% clear that a third party has damaged a company you own. That does not confer the ability for owners to sue the company for investment losses. But it would confer the ability for the company to sue the third party. And in Yonemura, that is what is going on via the owners acting on behalf of the company.
And that is why one is dismissed and the other is being settled. The settlement will most likely involve LP/Cognate returning some of her profits to NWBO, though I doubt any cash flows.
BTW, The case will of course be dismissed once a settlement is reached. That is how it works.
In Learner, investors are suing NWBO for stock losses based on NWBO actions. The plaintiffs are asking for certain buyers of NWBO stock to be compensated for stock losses.
In Yonemura, NWBO (via owners) are suing Cognate and LP for damages from alleged self dealing. They are asking money to be returned to NWBO from Cognate.
Even if the events in play are the same, the nature of the lawsuits are very different.
Suppose in some other case it is 100% clear that a third party has damaged a company you own. That does not confer the ability for owners to sue the company for investment losses. But it would confer the ability for the company to sue the third party. And in Yonemura, that is what is going on via the owners acting on behalf of the company.
And that is why one is dismissed and the other is being settled. The settlement will most likely involve LP/Cognate returning some of her profits to NWBO, though I doubt any cash flows.
BTW, The case will of course be dismissed once a settlement is reached. That is how it works.
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