Hi Ryman, the link is an abstract / hypothesis connecting insider selling to class action litigation and gives a general overview of litigation - driven class actions. But I don't see the relevance to these Antares programmed sales. If, as this articles talks about, there is a "crash" in the stock price, then someone, some class, will file a lawsuit and such is life in this litigious society.
From your article: " Hence, it is important to distinguish between “abnormal” or “strategic” insider selling and routine insider selling for predicting shareholder litigation. Insiders often sell for diversification or liquidity reasons and rebalance their portfolios.
Since these types of insider sales are not motivated by adverse (private) information, we would not expect such sales to result in stock price declines that trigger lawsuits. footnote 11"
And why would current fund managers/buyers of Antares, vote to approve the vehicle that provides insiders with performance based options?? I think if a fund manager looking into buying Antares takes a more holistic overview and weighs all aspects. I think the BOD of Antares wants to keep the current regime at Antares and they want to keep them happy and if the insiders want to tap into what if offered to them as a reward for their work, I have no problem with that.
I also think what would hurt the price the most, would be for deals to become unraveled - for Antares to not execute their business plan. Come to think of it, whether we all like or not, agree with it or not, part of the Antares business plan is the availability of cashing in the options. Is Wotton doing so, because he knows the stock is going to crash and burn? I don't think so.
That's it for me for awhile - back to family activities, Thanksgiving with relatives (for the first time minus the family Patriarch), travel, all that good stuff!!
