So after the Walters/Humphries suits are complete that is it for any existing suits against HLNT correct?
So far, the cases being litigated are just the New York Case and the Texas case of Walters. Humphries has tried to sue HLNT, but didn't have the capacity to do so. The Bankruptcy Trustee is looking into the possibility, as the party of real 'standing', but will decline to do so, as the Trustee will know that it would be worthless to contend with Humphries actions and activities as the CEO of SSEV. Other than that, HLNT may file cases as to issues of libel and slander, and for economic interference, if it is deemed appropriate to do so.
What is our potential exposure with these suits to your best guestimate?
In the Texas Case, Walters is suing for two notes (bogus by the way) which total $130,000. I won't guess as to any other amounts if we were to possibly lose, as I will not set a benchmark. In the New York case, we stand to recover some, if not all, of our expenses with regards to Walters, including any losses in the Texas case as that would be an additional determining factor for damages in the New York case. For Walters, its a lose/lose situation, regardless of if he wins in Texas. One of his (not mentioned) purposes was to cause HLNT more cash drain in the hopes that HLNT could not continue the lawsuit battle, which by the looks of it, will not happen. I will not guestimate here what we could make as again, I don't want to set a benchmark.
How long do you think it will take until HLNT is fully reporting. They only have to report for the last 2 years correct?
There are two reporting levels for filings, the SEC's standard and the OTC's alternative standard (The OTC also follows the SEC standard where companies are able to do so, but the alternative standard simply allows the filing to be done unaudited.). In either standard, a large part of the reporting is the transactions concerning stock. For many companies, the lack of filing or failure to file is financially related, but in HLNT's position, the lack of information from Humhpries, especially as to all the wheeling and dealing before Robinson and Foster became directors, is what most concerns HLNT. Supposedly, from Humphries filings in the New York case, he had sent several binders of documents to the FBI(?) which contained stock transactions as well. That is the information that he is supposed to have provided all, or in part, to HLNT attorneys. This is not a case where some numbers can be guessed at and thrown together for reporting, and while the T/A has information on the shares outstanding, they don't have the ability to determine if any of those shares were issued for invalid reasons. Remember, Humphries was caught forging signatures for stock issuances since he wasn't getting any funding from Ribotsky. I have not heard about the status of the documents received, but I have heard from Mr. Zeller that they are working on the OTC alternative filing and would like to get it finished. But I don't have any more information than that.
But as to your question, once they (HLNT) have determined that they have all the supporting documetation, it could take about a couple of weeks to finish the write up and submission. In other words, it could happen during this quarter.
