virginian: First, bankruptcy would not affect USXP's stature in the appeals or trial process. The appeal process rests solely on whether the judge made any error in the interpretation of the law, not what the current condition of the company is.
Second, the issue of a trial has to do with the remaining charges against RA, USXP, et al, the charges not previously covered by the partial summary judgement.
Third, USXP was supposed to provide the fines, or at a bare minimum, a bond that covered those fines, within 10 days of the verdict, regardless of whether they would be appealing or not, and regardless of whether the SEC wanted them to pay them then or not. That's part of the legal process imposed by the courts, not the SEC. My reading of the recent filing seems to indicate they haven't put up the bond yet, but that isn't clear. What is clear is that the SEC is seeking to have RA and Gunderson's penalties imposed now. I'm actually surprised that they seem to have waited so long. They could have demanded the imposition almost immediately after the judge handed down those penalties.
Again, the legal process would not be impacted by USXP's status as a bankrupt company. Bankruptcy would not impact their ability to pay for legal fees, assuming the company has actual revenues. In fact, it would reduce the company's immediate expenses as all liabilities would be put on hold.
And removing RA doesn't impact the company's case either. USXP's defense doesn't depend on RA, it depends on their lawyer.
