Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

A total of $435,000 in accrued interest expense

Context:

$1.65M = Nasrat's price for Elite shareholders to buy trimipramine from Mikah.
$1.2M = Nasrat's price for his buddy to buy Norco, Percocet, Dilaudid, and Methadone from Elite.


As I previously mentioned, trimipramine is on the Beer's List of dangerous drugs and should not be prescribed for older patients. Younger patients are started on newer, more effective, safer drugs. The sparse number of patients still taking trimipramine is dwindling day by day, but Elite shareholders continue to pay and pay.

SELF-DEALING IS ALLOWED WHEN THE FIDUCIARY CAN DEMONSTRATE THE TRANSACTION WAS FAIR TO THE CORPORATION AND OTHER SHAREHOLDERS.
The duty of loyalty does not prohibit a director from self-dealing but the fiduciary has the burden to establish that transaction was fair to the corporation and other shareholders. Related party transactions are closely scrutinized to ensure that the transaction is fair. The self-dealing director must demonstrate that there was fair dealing and that the transaction was on fair terms—price.

.