8000 Incorporated (EIGH)

[loanranger]

I was shooting for informative, but I guess "interesting" will have to do.

http://sec.gov/answers/tradingsuspension.htm

http://www.google.com/search?q=class+period&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a#hl=en&sugexp=ldymls&pq=class%20period&xhr=t&q=%22class+period%22+%22trading+suspension%22&cp=35&qe=ImNsYXNzIHBlcmlvZCIgInRyYWRpbmcgc3VzcGVuc2lvbiI&qesig=s_eC5iL9mX3GJ6ci_tAusQ&pkc=AFgZ2tkykgyZYtFBI8XWm788JEv1Regt_AAQklH4GZ9nYUoNHBeJRBUzCfoZ7UPgOwPk2Ub52AjU2ldaoYFSpKfpmz6eJ7AWTw&pf=p&sclient=psy&safe=off&client=firefox-a&hs=S4j&rls=org.mozilla:en-US%3Aofficial&aq=f&aqi=&aql=&oq=%22class+period%22+%22trading+suspension%22&pbx=1&bav=on.1,or.&fp=eb3207f822e70c41

I was responding to your comment: "It could also mean missing out on settlement $."
I understood that to mean a typical class action settlement, where the plaintiffs are suing a company and its officers for some actions that were taken that resulted in their essentially making an investment under false pretenses.

If a case should ever be made by shareholders that a party or parties took naked short positions which resulted in the depressing of the stock price, the suit would be filed against those parties. If that is the settlement that you referred to in your comment, fine. Obviously the timing of a trading suspension, based on an entirely different set of facts, would have no bearing on the class period in that action.


"I do agree that some small limit has to be placed on when a person could have bought and still benefit from a settlement(perhaps weeks). All news leaks and the SEC wouldn't really want folks to front run any positive conclusion to this mess."
The legal community has not sought your agreement. I know of no class action brought based on issues contemplated in a previous SEC trading suspension that has included as plaintiffs investors who purchased after the announcement of that suspension. The reason for the suspension is laid out in general in the body of the suspension, advising the investing public of the questionable reliability of the public statements at issue. This is the reason for the "caveat emptor" toxic warning. How could you possibly consider that someone who purchased shares after that warning was harmed by anything other than their own stupidity? Are they entitled to share in the settlement with those who were actually deceived? That's why one of the first and most critical determinations to be made in the filing of a class action is the determination of the class period.
SEC concerns about front-running settlements don't have anything to do with it. Anyone who buys (or holds) shares in the expectation of profiting, or even benefiting, from a class action settlement needs to re-think the issue. Hopefully beforehand.

In case it's not clear from the above, you do not have to be holding the shares when a class action suit is filed in order to participate in the suit or any settlement.