Zion Oil & Gas Inc (ZNOG)

[DragonBear]

Another frivolous lawsuit

The lawsuit(s) are weak based on claims the company knew they were under investigation, along with exec compensation.

Most Microcrap scams don't know they are under investigation until the investigation goes formal. The SEC doesn't want to pre-warn the scammers they are coming after them.

A Microcrap scam can pay its execs in excess of what they deserve. Nothing legally preventing it. Unless taken to extremes.

The first lawsuit with all the lawyers will have to base their case, on the route the SEC is taking. Follow the DSPP money trail. Or some other accounting irregularity that constitutes a security violation. Something in the audits attracted the SEC's attention to start the investigation.

It will take more than the lawsuits claiming the execs were paid more than they were worth, or they knew an investigation was going on. Maybe the 2nd one is reserving its place in line. Ready when the SEC doo doo hits the fan in 1-2 yrs.