Phenix:
Starrs should settle. Starrs looks at settling like losing but spending another $300,000 - $500,000 on legal fees is not winning. The class action guys are watching that lawsuit and will use the details from that just like TCA and Chicago Ventures used the details from the auditor lawsuit.
Ed can't walk away from the lawsuit in terms of MEC. If he does. Maciora will get ALL the records post judgment to collect. He will also prove that MEC was worth nothing which is the reason why he walked away.
If Starrs actually is going to raise money for the current entity which is doubtful, the lawsuit can't help to raise money.
This is the way I see it. Starrs will need:
1. $20,000 - $40,000 for a Form 10
2. $50,000 for audit.
3. State tax liens - have no clue how much it is.
4. Continue to pay payroll in Israel.
5. Pay off current legal bill. Just a guess but probably $25,000 = $50,000.
So he will need $300,000 minimum to get the current public company public once again. Spending the money on the Sac lawsuit makes no sense.
I haven't see any motions related to discovery requests from Rod and Bill yet so he still has all that which he has to deal with. Maybe it hasn't even started.
I don't think I've ever seen a lawyer get to the point that there are 350 docket entries against a pro per. In some ways, Maciora has schooled Starrs' lawyers.
The federal fraud lawsuit is also something he should walk away from
IMO, Starrs will open a new company. If he doesn't give everyone new shares in the new entity, he has a problem. If he does, he still has a problem. If he does, he will still face lawsuits.
He also has personal exposure here. If Maciora beats him, does he really want someone chasing him for the next 10-20 years with a judgment.
He should settle and if he settles, it will tell me he's smarter than I thought. However, too dumb to settle.
