There was zero LACK of disclosure by Labor SMART or its CEO.
Every fully reporting company has strict guidelines that they have to adhere to, by both FINRA and the Securities and Exchange Commission.
Also, liability is assumed by that company's SEC auditor, accountant, Principles and SEC counsel, in the final preparation of any SEC filing.
In this case, the statement "There was a lack of disclosure by Labor SMART" is an opinion NOT an actual fact.
Additionally, any time there is an event that could have a material effect either positive or negative on a public company, they are legally required to file an 8K through the SEC. In the case regarding Labor SMART's payroll tax obligations, it didn't even meet the "material event" criteria. Probably because it wasn't a big enough problem to have any type of material effect on the company.
If we don't want to accept the rules handed down by the SEC regarding disclosure issues that is fine. Possibly, we should reconsider investing in the market if we don't believe that FINRA or the SEC is doing a good enough job in requiring public companies to keep us informed concerning every single event that goes on in their operations..
However, it is absolutely unacceptable to throw around words like fraud and deception when a company has followed all the rules and committed no violations to its governing bodies.
I also wonder why, if this is such a big issue, NOT A SINGLE question was asked regarding this issue during Labor SMART's recent 2nd quarter earnings report a couple of weeks ago. EVERY person on the call had the ability to ask Labor SMART's CEO questions. I know that if a CEO "allegedly" lied to me, I would call him out in front of an audience, the very first opportunity that was given to me. But that didn't happen. There were many great questions asked, but not a single question calling out the CEO for lack of disclosure or any other negative issue I have personally read on this board.
Seems like when given the floor and an opportunity to be heard, no ones cares to hear the answers to these issues.
JMHO
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