I think Starr may have shorted as you said
This is a highly possible. See my other posts. I came to the same conclusion because I think the latest lawsuit by Starr appears nothing more than a sham designed to make it so costly for management to defends themselves, they may decide to abandon the shell. If that happens, it would be a total win for shorts.
Delaware court has no jurisdiction over Fujian subsidiaries. There is no hard evidence in the lawsuit. Management only need to claim proprietary information, court can not force a probe in to those subsidiaries. Starr can not uncover the suspected "fraud" through legal discovery process.
For shorts to win, they only need to attack the weakest link, that is the CCME, Inc. shell. That is the only link between the value of company and longs. If the shell goes, it would be a total loss for longs.
Starr is no friend, nor victim here. IMHO.
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The true intention is not to find the truth, but to kill CCME, Inc. Shorts want to bust the shell. The only link between longs and value of the company is this CCME, Inc. shell. If CCME, Inc goes, longs lose it all. Shorts does not need to be right to win.
Shorts intend to force CCME, Inc. to file for bankruptcy. Management lose investor base but to keep the company. Longs have the most to lose. Shorts will make it so costly for management to defend themselves, management may decide to give up the shell and the investor base along with it.
**** Longs demand court to throw out Starr lawsuit! ****
My fellow longs, Starr is no friend, make no mistake! The latest lawsuit is designed to kill CCME, Inc. Longs have the most to lose!
IMHO,
There is no new evidence here. Management were not cooperative with DTT probe, which caused DTT to resign.
Starr did not bring to light any new evidence, new information. Everything in this lawsuit is public information.
Now, lets think for a minute.
Starr knows too well, that Delaware court has no jurisdiction to force a probe into CCME's Fujian subsidiaries. If what they want to achieve is to uncover the suspected "fraud" through legal discovery, they know too well, it is going to fail.
So what is the real purpose of filing this lawsuit without hard evidence? Could that be a smoke screen like all other "class action lawsuits"? Is Starr really a short in disguise? So many shares have changed hand, it could be very possible Starr has switched side long time ago. If Starr has switched side, could there be a collusion between DTT and Starr?
Another observations: why jury trial in a lawsuit that is highly technical? Is the lawsuit designed not to recoup "loss" but to kill CCME, Inc., the shell?
The plot thickens, indeed.
**** Longs demand the court to throw out this lawsuit! ****
There is no evidence, no merit. We do not know the true intention of Starr.
It could be a well designed trap to kill CCME, Inc.
Longs have the most to lose if this lawsuit goes forward.
