Replies to post #74543 on Muscle Pharm Corporation (MSLPQ)

[Rhenarium]

Sounds like:

1) SEC issues with MSLP itself are going to be resolved with minimal penalties. Legal costs are presumably mostly incurred already. I think MSLP's insurance company has thus far refused to reimburse them for legal costs. MSLP may or may not eventually recover some of these legal costs.

2) SEC issues with Brad personally are going to be resolved. No idea what if any penalties will be imposed on him personally. MSLP has presumably covered his legal costs, which are presumably mostly incurred already. I think MSLP's insurance company has thus far refused to reimburse them for legal costs. MSLP may or may not eventually recover some of these legal costs. The

3) SEC may file charges against former officers. MSLP has a legal obligation (based upon their corporate charter and Nevada state law) to pay for those former officers' legal costs (even though a few minutes of internet research suggests that the SEC frowns upon this and may even believe it to be illegal). It is obviously unclear whether those former officers would be accused of the same infractions as Brad, or something entirely different. If the same things as Brad, it stands to reason that legal costs may be relatively low - SEC has already done it's investigation, MSLP has presumably provided the SEC with all the information it requires, Brad's settlement provides a model for settlement with the other officers. If they are accused of different and/or more serious things than Brad, legal fees could obviously be very high. MSLP's insurance company is obviously not gonig to cover those fees willingly based upon their unwillingness to reimburse MSLP for legal fees already incurred.