Every lawsuit is different.
Generalizing about litigation is almost as unwise as generalizing about stocks.
The settlement in this case resolves several issues that investors have had for many years:
1. The dilution, which had occurred at times when the share price was very low. The new director will have a veto over any future dilution.
2. A director, completely independent of Solomon, will join the board.
3. The company has agreed to quickly bring a new CFO on board.
4. Solomon has agreed to at least "consider" restricting or retiring his A-shares.
Sure, there are no guarantees, but that's the nature of investing.
Any time a settlement addresses key issues, and moves the governance in a positive direction-- that's good for shareholders.
