"Honest companies don't gag their TS's"?...This is absolutely not true. Companies such as Berkshire Hathaway, Hansons Natural foods and many others have done so and/or applied to do so for one reason or another, however before any TA is gagged the SEC has to approve this order because gagging the TA without the SEC's consent would be in violation of the Freedom of Information Act...it is not solely up to the company and Spongetech couldn't just tell the TA they are not allowed to say anything about the share structure...further, the SEC clearly states that in order for a TA to be gagged, a company must file Form "CT order" (which Spongetech did) and furthermore, the SEC will not allow the gag order unless the company clearly demonstrates that the gag order is "in the best interest of the public/shareholders" (taken directly from the SEC website).
In order to place a gag order on the TA, Spongetech had to spell out to the SEC (under the pains and penalties of perjury) that a non-disclosure of the O/S was in the best interest of the public/shareholders...there is no way it was done with any mal-intent on the part of the corporate officers. If that is the case, these officers would be blatantly lying straight to the SEC...MM and SM (both wall street/business world veterans)would never do this. Also, Form CT Order was prepared and signed by Spongetech's legal counsel, who are ethically bound to disclose to the SEC the true reasons for gagging the TA. No neutral-party attorney working as an independent contractor making six, if not seven figures a year would dare risk being disbarred and/or face criminal and civil repercussions. These attorney's have no loyalties to the company and certainly would not lie to the SEC for them and risk their freedom/livelihood.
Bottom line, the SEC would not allow the company to place a gag order on the TA unless it was in the best interest of the public/shareholders. It is very likely that there is in fact NSS going on and this gag order was put in place to keep the hedge funds/market movers/manipulators in the dark about the share structure. When the order is lifted, these manipulators will be caught with their thumbs up their asses...
