I agree that any talk of sjing is premature as we DONT know what is going on and that really isnt much different than it has been the last year or two. However, IF they pull the rug, those are the options available. The breach of fiduciary responsibility here in such a case would be rather blatant as they have responsibility to all - not just some or one side or the other. Having "different interests" in mgmt with two separate companies does not give license to breach that responsibility. Also, if suing, one needs to be very clear on motive: recovery, punishment, revenge, etc. If recovery - is there anything left to recover? Revenge - if tbey arent a moral person, revenge will be tough to enact. Punishment - that is best left for the SEC though they tend to pick and choose cases based on maximum exposure of judgments - think Martha Stewart. What she did was clearly illegal and sbe was probably generally unaware of the severity and it pales in comparison to what dirty MMs and shell companies do everyday. HOWEVER, that suit and verdict got MAJOR press and put the fear of god into everyday celebrities, athletes, etc about insider trading. So - maximum exposure. What exposure would this case provide...? Probably little unless losses were in tbe hundred of millions.
The company could erase doubt or this type discussion by simply opening up communication and transparency.
AI
