I was trying to think of what damages they could claim.
A drop in the share price isn’t really damage to the company, but to its shareholders. And the shareholders have sued the company.
Lost profits make sense, but then the question becomes, what caused the lost profits? If UDF was able to stay current with its financials, then it would have lost profits after the initial attack (due to banks pulling credit, etc), but its business would probably be back to normal now,
Can you blame the SEC investigation on Hayman? I don’t know, but I doubt it. He presented his info to the SEC (and FBI) and they decided to open investigations. The SEC won damages, so you can’t really say the investigation was frivolous.
UDF has blamed the delay in financials on the SEC investigation. So, if you can’t blame Hayman for the SEC, then it seems like you can’t blame him for the late financials and, therefore, any profits the business lost due to those.
I’m not a lawyer, so maybe (probably?) this whole post is complete nonsense and makes no sense legally, but I think it’ll be hard to win a large settlement.
