Ben:
You could probably pay a law firm 25 grand to write you an opinion letter on this topic discussing each specific instance of what DTT may or may not have done here to evaluate whether it constitutes recklessness, or whether multiple factors play upon each other to yield that conclusion. I'm not about to do it. The answer to be provided depends on a number of factor including information we just don't have now (that hopefully will be revealed in discovery). To be more clear, I'm not about to answer that question, leaving myself to have to respond to a hundred follow up questions and comments from many who read these posts. To all reading this, do not act or rely upon this message to your detriment. Consult your own attorney before taking any action. I am not your lawyer.
I'm confident the class action attorneys will pursue DTT and therefore will address these issues in their legal briefs that will undoubtedly apply the issue of recklessness to the facts discovered in the case.
In general, if DTT is sued on behalf of shareholders, the question the court/fact finder will be asked to consider is whether DTT was reckless. The alleged facts you named (and others) will undoubtedly be considered in determining what is reckless.
The fact finder will apply the facts found to make this determination.
That's as far as I'm prepared to go in answering your question (though I may change my mind at a later time) :)
BTW, we just don't know yet whether the real problem here is that DTT left CCME for reputational risk reasons and that perhaps DTT found no real evidence of a problem. We just don't know the facts to then begin to assess who is responsible, and for what.
I read recently a post on YMB which asked to see false bank statements compared to real ones, or an SEC finding that Zheng did in fact sell shares without reporting. There is yet only speculation. With all the issues alleged, isn't it remarkable that no one has shown even one sheet of paper that shows CCME or its managers committed brazen fraud?
I'm not saying there's no fraud. I'm not saying there is fraud. I'm saying I have not seen the proof. Without proof, how could anyone evaluate what DTT should or should not have done?
-Andrew
