Hop-On Inc (HPNN)

[Arthur]

A shareholders' lawsuit is hopeless, IMHO.

Oh, there are plenty of material misrepresentations and quite a few accounting irregularities (like, for example, the $600K diverted to the Green Frog Fund),
but Stilly hopes to find a lawyer willing to work on contingency. That's the hopeless part.

There is no money to recover. PM is dead flat broke, and Hop-On is only an empty shell.
No lawyer will touch this case for free (on contingency).


In a Shareholders Derivative Suit, the plaintiff sues the directors of the company ... on behalf of the company itself!
As far as I know, such lawsuits are costly, and the burden of proof is entirely on the plaintiff.
The corporations has many Safe Harbor provisions to shield them from the consequences of garden-variety bad business decisions.

One exception is when an officier directly uses the company funds for his or her personal expenses, or otherwise comingle the company money with his own money. In that case, one can pierce the corporate veil, and sue the individual directly, istead of suing the corporation proper.

From the top of my head, Delaware and Nevada are the States that offer the most protection to corporations (and officers thereof) in cases of bankruptcy or shareholders complaints.

So, no, I don't expect such action to ever take place.

The very first step would be to attempt to oust the current director(s), thru a shareholders vote at the Annual Assembly. But PM knows all the tricks to keep full control of his company, even if he, according to the company unaudited reports, owns no shares.