World Health Alternatives, Inc.(fka WHAIQ)

[finbar99]

Keep in mind the D&O policy would be used to collect on any damages from the Directors/Officers/CEO - on top of any thing that would come out of pocket for them - but usually nothing out of pocket for the D&O's - but in this case the CEO would be a different story - I remember an article that after he left a personal brokerage statement was found in his office with 40 mm in assets (though I think half was whaiq stock) - still 20 mm which hopefully has been frozen through some law enforcement mechanism. But on top of the D&O and anything left with the CEO, they would attempt to recover separately from the E&O of the auditors, and possibly the former legal counsel who has also been mentioned as a target. The class action has recently been settled - the trustee attempted to intervene and step into the shoes of the plaintiffs but the judge did not allow as they were sueing as on a 3rd party basis under Ultra Mares type doctrine - there was one part of that consolidated suit that was derivative in action but the derivative part was dropped in the settlement (the derivative part would have precluded the trustee from making the same claim - but I read the judges opinion on denying intervention and he specifically cited the dropping of the derivitive claim as the basis for denying the trustee's motion). Contract law between the company and its auditors, legal advisors and D&Os is far stronger legal basis for larger damages. I think it will be in interesting ride once the cases start being filed and I think that will be sooner than later based on detail in the fee app