DD Support Board and Research Team

[janice shell]

BUT... When the SEC wants to go after PIPE holders who short against their restricted stock, it invokes Section 5 of the 1933 Act.

And that's what the courts don't like. Here's another article. It takes a point of view different from that espoused by the authors of the ones I posted yesterday:

http://www.mofo.com/files/Publication/49904f3a-7f1a-47d9-befa-cb54d44dacb7/Presentation/PublicationAttachment/28dac0e9-7293-49bc-8261-83de05f1fb60/IFLR_Over_the_Worst_of_It_June2008.pdf

But it seems to have been written just after the Mangan decision. And since then, the SEC has lost several more cases.

There seems to be a real controversy here that needs to be addressed.