I think this is a net net loss for the shareholder served with a libel lawsuit.
Here's why.
1) the shareholder will likely incur legal fees to defend against it, unless the shareholder can prove that the lawsuit is frivolous and has no standing. But with 10 years of data from which to find fault, I doubt such a claim can be made.
2) the shareholder will incur legal fees for any counterclaim. This is not small claims court. Hence, the fees will be substantial unless a class action attorney is interested. But given ERHC's meager financial position, I seriously doubt any class action attorney will want to take up the case...it's simply not worth their while. And, of course, any counterclaim will be hard to prove because even if reporting faults are cited regarding IRS, etc., etc., no one can tweeze out whether the share price fell due to no oil found (which is no fault of the company) or due to some lack of reporting or shareholder meetings or some such thing.
3) Even if the shareholder has few assets to lose in such a lawsuit, at the very least if the Company proves that the shareholder is guilty of libel and wins, then this will forever besmirch the reputation of the shareholder, which could result in sanctions on licensure if the shareholder is some sort of a profession, e.g. a CPA, or whatever.
This does not look very good for the shareholder subject to this libel lawsuit at all.
Sooner or later there are consequences to one's actions.
Krombacher
