MGT Capital Investments Inc. (MGTI)

[shajandr]

There is a 100 percent certainty that MGTI is going to bankruptcy. The only issue is whether Chapter 11 (reorg) or Chapter 7 (liquidation). Either way, MGTI common stock is worthless.

The class action shareholder plaintiff lawsuits will take all the D&O insurance coverage and still likely have a hefty judgment outstanding against the MGTI assets. Also, as the existing SEC case against Honig and Ladd proceeds through discovery, it is very likely that the company itself will be added as a defendant. It highly likely that additional management/directors have committed malfeasance and you can bett that Honig and Ladd will try to deflect blame by pointing at others on the Bored and in mismangement - prolly including Bath Salts Johnny. Once the SEC has this basis to obtain warrants for the trading accounts and bank accounts of the other directors and (mis)management, like Bath Salts Johnny, the SEC case will expand adding them and the corp as additional defendants or at minimum relief defendants.

A LOTT of munny was lost in the MGTI scam, and the D&O insurance (if any) has a low coverage cap that won't come near to covering the judgements against the management and directors, let alone the corporation itself. This was nott your typical pennyscam - MGTI lost a TON of market cap - and that's all DAMAGES for the plaintiffs to claim.

MGTI will gradually, over the course of the various lawsuits, drift down to the true value of the common stock- ZERO.

This turd is finished like SPNG - way too much munny was lost by investors.