I will say that if NXGWF were to be sued, it probably won't be their last. Companies get sued all the time, whether the lawsuits have any merit will be up the courts to decide. Lawsuits will come in many forms, from disgruntled employees to contract disputes.
As to a group of employees being laid off or fired (use whatever term you like), the reasons behind that decision, though difficult, might be necessary from a business standpoint. Is it a decision that is necessary to ensure that the company reach profitability or to even continue doing business? Are those business concerns further amplified by the coronavirus?
From the standpoint of a laid off employee, yeah, it does suck! Nobody ever believes that they should fired. You might be angry. You might even file a lawsuit and you might even win your case.
All these things might point to a young company in trouble or it might point to a young company wrestling with hard decisions and making those decisions in the best interests of shareholders. It might even make the company look selfish and greedy.
Look, the company's share price has already been beaten down. The share price already reflects all the concerns, known and unknown. I mean the market cap is less than the cost of their land and facilities. So this altruistic desire to warn shareholders sounds to me like someone who just wants to burn the house down.
Nobody is saying they know the inner workings of this company. There's certainly a lot of things they could have done better. I for one wished they didn't let Leigh go without having someone to replace him. This company may go bankrupt like a lot of new business or it might overcome its early struggle and succeed. I might lose all my investment or I might make a fortune. That's the risk I take when I bought shares. I just hope management does not give up despite their early struggle and to continue to make those hard decisions in the best interest of the company.
AI
