RE: Class action lawsuits...
From my posting on May 19, 2010:
"I spoke with Phillip Kim at the Rosen Law Firm this morning. He shared with me that they now have their lead plaintiff reporting a loss on EGMI of about $1 million, which is higher than the lead plaintiff on the other filed suit. He therefore expects that when the lawsuits are consolidated this summer that Rosen will take the lead.
They will be amending the lawsuit to include other parties such as auditors, officers, directors or others. They may also enlarge the time period covered by the suit. The case will likely take 2-3 years to resolve and collection will depend on insurance, personal assets or other resources available. Their fees will typically be limited to 1/3 of the recovery. He would not make any estimate of the recovery potential, but they must feel it's worth pursuing since they seemed to be excited to be taking the lead and willing to front the considerable time and expenses that will be required."
Unless you have some information that is not publicly available, you do not need to take any action. All shareholders who incurred a loss as a result of the misstatements or fraud will be included in the class. The amount of the suit will likely claim 100% if the losses resulting from those actions, consisting primarily of a market value loss in excess of $100 million.
Of course, under the circumstances getting a judgment may be the easiest part -- collecting it will be the challenge. The estate of LS may be the deepest pockets that could be tapped. We'll see.
AI
