AXM Pharma Inc. (AXJ)

[jimmieh]

Best guess? It is unclear to me whether this action will be taken against the former CEO and/or the officers of the Board at that time -- regarding the improperly stated revenue from the Sunkist contract.

The company has already taken a huge impairment charge for that debacle, but they may still have to "pay" for any penalty that the SEC determines to be appropriate.

The best case, in my opinion, is if they seek enforcement from the former CEO (and anyone else who profited from the false claims)and seek disgorgement of those illegal monies.

Either way, this is another distraction, a significant one, for the company to deal with instead of focusing solely on their business model.

Jimmie