NeoMedia Technologies, Inc (NEOM)

[Poptech]

diamond: The SEC is after YA for two things: 1) using a valuation formula YA didn't fully disclose to at least two investors, 2) carrying loans for longer than 18 months.

The SEC suit emphasizes that YA isn't doing enough conversions to justify the existing loans.

According to the SEC, YA should be converting NeoMedia faster and should have forced NeoMedia into bankruptcy. It that really who you want to snuggle up with?

The last NeoMedia restructuring agreement makes it clear YA doesn't think much of the SEC suit. With the sequester, I predict the SEC will emphasize that for a little penalty into the SEC kitty, they will go away.