DD Support Board and Research Team

[used0000]

Does anyone here know if the SEC ever put a remedy, or rule change in place to prevent this type of Short, and Cover activity?

This case was back in 2008.


"the Court examined the
mechanics of a short sale and concluded
that publicly traded shares, not the
PIPE shares, were sold in the short sale
and that no sale of PIPE shares took
place until the covering transactions
were executed. In the Court’s analysis,
how the short seller subsequently
chose to satisfy the corresponding
deficit in its trading account did not
alter the nature of that sale."

http://www.lowenstein.com/files/Publication/d30512ad-2799-4d69-b545-0050fe0d9904/Presentation/PublicationAttachment/a1c24b0e-f23f-49d5-9a8c-049650157253/SPFin%20Client%20Alert%20-%20Jan08.pdf