Spongetech Delivery Systems Inc (fka SPNGQ)

[flptrnkng]

The class action suit was an expected move

and it probably won't be the last suit filed.

In my view, the class action suit(s) lead to two probable next moves:

1) No 10-K filed in the foreseeable future. Spongetech/RME/M&M are now caught between the SEC (and possible DOJ) and these class action lawyers. They can't please both parties with any one 10-K (admit to the bogus sales to sham companies, file the 10-K with obviously reduced revenue/sales/profit numbers, and the class action lawyers will feast on the admission. Stick to status quo and stonewall the feds and your own auditor, and the auditor will never sign off. I also see M&M's personal lawyers strongly advising them to not sign ANY legal financial documents at this time.

2) Some form of bankruptcy protection for the corporation, probably Chapter 11. SPNGQ.PK is the next symbol change, my view.

Regards