Thresher Industries, Inc. (THRR)

[sycoblast]

just found this article its dated back a while so opinions anyone ?

RAC Corporation and Robin A. Carden File Civil Lawsuit against Thresher Industries.
Publication: Business Wire
Date: Thursday, October 18 2007
FOUNTAIN VALLEY, Calif. -- On Oct 11, 2007 RAC Corporation and Robin A. Carden filed civil lawsuit against Thresher Industries (THRI.PK) and two members of its Board of Directors. The suit was filed in Orange County Superior Court. The lawsuit brings actions for fraud in the sale of securities,


deceit, breach of contract, and related actions. Buffington Law Firm, PC is representing the plaintiffs in this action.
In December 2006 Thresher purchased Talon Composites, LCC from RAC Corporation and Talon Holdings, LLC for a total of $7,500,000, which amount was to be paid not in cash, but in shares of Thresher Common Stock shares of equivalent value. The complaint alleges that the Thresher stock exchanged for ownership in Talon was essentially valueless, and that its stock price immediately prior to the transaction was artificially propped up in a variety of ways.

Thresher represented to the plaintiffs that it had adequate capitalization to function as a going concern and that it had strong business prospects and good operating cash flow. The plaintiffs allege that these claims were false and represented a knowing material misrepresentation by the defendants. The plaintiffs claim that the Thresher stock is now completely worthless and was always essentially worthless during late 2006 and 2007.