I believe that the defendants knowingly made false and/or misleading statements and/or failed to disclose: (1) that the media credits acquired by the Company in connection with the acquisition of JavaCo were substantially overvalued; (2) that the Company was improperly accounting for acquisitions; (3) that, as such, the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times and it seems that you don't.
To accept that such actions were made unknowingly one would have to accept at the very least that the certifiers of the 2009 3rd quarter 10Q perceived one of the acquired assets to be worth $9,997,134 when it was actually worth nothing at all. Based on their purported experience I don't believe that. While the goodwill and other acquisition issues are more complicated and could credibly be attributed to accounting irregularities, as you define them, the simple issue of the media credits can't be pawned off as a mere mistake. Especially when they comprised better than 70% of the company's current assets.
I'm not offering this up as a legal argument and I don't pretend to know exactly what the defendants knew at the time. But the CEO of a company that had a total of $300,000 in Assets at the end of, and $50,000 in Revenues through, the prior quarter does not, or at least should not, acquire a $10,000,000 asset with his eyes closed. Can you offer up any choices other than impropriety or incompetence?
Sometimes it's difficult to be both honest and nice. Forced to choose, I will always opt for the former. That's all that you should rely on.
I'm tryin ta think but nuttin happens......Curly
