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PrincessLeia

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PrincessLeia

Re: None

Wednesday, 04/23/2003 2:43:17 PM

Wednesday, April 23, 2003 2:43:17 PM

Post# of 13328
UNLIMITED Liability of Class 2

Normally, one has limited liability when buying a stock. An investor can lose only the amount that was invested and no more.

In this case, members of Class 2 have UNLIMITED liability because they participated in a conspiracy to defraud Class 1.

The punishment for fraud is usually TREBLE damages plus legal costs. Federal judges have a salutary reputation for being especially tough on fraud.


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