CMKM Diamonds Inc (fka CMKX)

[jb1967lbk]

It's not really a case that should ever go to trial, but they did a very good job jurisdiction-shopping before they filed. In almost any other jurisdiction, this frivolous suit would have been summarily dismissed.

Nobody has made anything up about Skippy. He did lie about his working capital situation in January 2006. He did compare non-GAAP 2007 reports to GAAP-compliant reports during a recent conference calls. And he has lied in the past about Overstock.com being cash flow positive when, in fact, it was not.

Skippy is going to get hammered if this thing goes to trial. But I suspect that the real intent was never to win anything in a trial. This has all the markings of so many suits we've seen in the past where incompetent managements seek to distract investors from their inept and/or corrupt behavior.