Lifeist Wellness Inc (NXTTF)

[ChazMichaelMichaelz]

2 suits. NO WINNERS

SD's removal could be justified even if the lawsuits are dropped or determine he is innocent of any criminal or civil wrong-doing. Namaste may be justified in alleging SD placed his interests above those of the corporation. CEO's have been fired for less. It could depend on the corporate bylaws. This does not mean he will be found guilty of anything in a court of law. The standard of proof differs.

I believe both parties' lawsuits were bad ideas.

Filing suit against SD exposes the company to a great deal more risk than benefit, especially after all the allegations were starting to die away. The fiduciary duty claim would imply no other officers were aware of his actions, but at least the CFO would have participated in the transaction. A win exposes Namaste to outside claims. A loss looks bad and implicates the current board as unscrupulous and dishonest. NO WIN SITUATION.

SD's decision to file suit just prolongs the fight. While he may prove his innocence. What will be the cost to him and SP? It is not likely, he will regain his role with the company. As the largest shareholder, the damage to the SP will hurt him more than any damages gained from a win. Also, a NO WIN SITUATION.

I sympathize for SD. He founded the company, built it up and has now been unceremoniously removed from having any power over its future; what should have been his future. His firing should have been handled better, for him and for the shareholders.