What to look for in the Answer.
It's very simple. If CMKX responds in kind to the points raised in the SEC's suit against them and nothing more, then it is simply going to be a pissing match at the hearing. In this case however the SEC will be holding a fire hose vs CMKX holding a squirt gun.
The key section or filing to look for from CMKX is titled 'New Matter'.
New Matter are issues that are brought up new to the case as part of a defendant's defense. The newly claimed facts go beyond denying the complaint's allegations that were filed by the plaintiff.
I am not 100% certain if such a filing is part of the protocol of the SEC hearing, but such issues and information are part of MANY civil and criminal law cases. It may be termed differently in a securities case, but this type of filing in addition to the direct answers to the suit are what to look for if CMKX plans to allege any NSS or trading issues.
Without it, the first paragraph applies and one of the SEC's responses will likey be the filing of a request in opposition to the Frizzle motion.
If CMKX does not file New Matter, the Frizzle motion will likely be rejected prior to the hearing date.
If CMKX files new matter with issues of NSS being raised, the SEC will have to respond to the New Matter before the hearing takes place. Such filings may push the hearing date back a few weeks. The judge has to rule on the New Matter filing before proceding to the hearing. There may even need to be a hearing (Oral Argument) on the merits of the New Matter itself prior to the final hearing concerning the lawsuit itself.
If your routing for CMKX, you need to see some form of New Matter filing in their response this week!
If CMKX files New Matter and the judge allows it to become part of the argument and evidence presented at the hearing, then it's a whole new ballgame. The Frizzle motion may be considered at that time, and actually add some weight to the argument. The real challenge though for CMKX/Frizzle will be to provide ROCK SOLID proof of NSS or other trading irregularities.
A lot of 'if's" I know...lol, but I'm just trying to filter the possibilities for everyone as we await CMKX's answer to the lawsuit.
Remember if it is just a declaratory answer to the points of the suit and nothing more is filed by CMKX, the first paragraph applies and at the time of the hearing the fire hoses will be turned on high, and Frizzle will have Fizzled before even getting a chance to sizzle.
Have a good Monday,
Bo : )
AI
