Justified? What are you implying? I don't get it...
I would think an r/s with another round prior to any positive would give any legitimate investor the best chance to position themselves if there is any hope for the company going forward.
I'd think I'd want my stake prior to any positive news; whether it's leaps, Multikyne, warts, or cash infusion from arbitration. Why would somebody want to follow up on that news with funding? Unless it was a private placement to somebody who already had shares?