Biotech Values

[zipjet]

Texaco was able to settle with Pennzoil for “only” $3B (about 30 cents on the dollar including punitive damages) because Texaco filed for bankruptcy prior to requesting an appeal. The bankruptcy filing was necessitated by Texaco’s having insufficient net assets (prior to the filing) to post the bond for the appeal.

Sounds about right.

If I have this right, Texaco could have paid the full judgment, the stock kept trading even after filing bankruptcy, and the company prospered even after paying the $3B.

My point is when judgments are BIG even companies that can pay, don't. Applied to Amphistar, they won't pay if the damages are anywhere near what we think appropriate. They won't pay because they can't. WPI is the other case. They won't pay in full because the the litigation risk and time delays will entice the parties to settle if MNTA/NVS ever get a BIG JE.