PGI Energy, Inc. (PGIE)

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Well if I understand correctly it only means that they need to hire non company related lawyer not that they are guilty...

Also from PGI's shareholder letter dated 07/14/11

We previously underscored the complexity of these contracts and the many terms defined therein that required explicit performance by us and counterparties to close those transactions. As a result of our underestimating that any provision of a contract not complied with could result in the contract not closing resulted in contracts not performing as planned. In our rush to disclose pending contracts to shareholders we failed to anticipate non-performance by third parties. A contract failed because bankers for each party would not comply with procedures outlined and agreed to by the counter parties. The legal department of both banks advised there bankers that they bankers could not perform the requisite provisions of the contract. This resulted in a loss of profit to us, because we had a purchase and sale agreement among parties.

A sale contract in commodities can fall apart as a result of testing the commodity against the specifications for the product and if the specs are not the same as the contract then the buying party has the right to reject the purchase and cancel the agreement. We engaged in a contract negotiated by a highly reputable law firm representing the seller in a transaction where we had an exit buyer for the product. We performed upon the contract and the other party provided false proof of product documents which we are required to verify before consummating the transaction to avoid being defrauded by counterparty. We discovered in that transaction that the law firm provided us with false proof of product documents as verified by third parties. Thus, we did not consummate the transaction.