ragsto:
Actually, in the case of a class action lawsuit, shorts hold the price of shares lower than it would otherwise be, which effect is increased artificially by naked shorting where non existent shares are sold. Damages in a class action lawsuit are incurred not by purchasing shares that are being held down artificially, but by the fact that damaged shareholders / class members have paid share prices that were higher because some material, bad news was improperly not disclosed to shareholders. In any event, this would have nothing to do with the responsibility of E & O insurers to provide the agreed coverage to DNDN, much less of the company's responsibility to possibly issue shares or pay damages itself pursuant to any jury award or settlement.
