Replies to post #49538 on Bitzio, Inc. (fka BTZO)

[Dutch1]

This is why they might settle even if they would win more after an appeal. Read it and you’ll understand why:

(It’s the Nobody12378 post from the GERS board I was referring to)


I finally have an answer to a question that has been vexing me for months -- why did KK/C&C choose the settlement route over the assured slam dunk on appeal in the Federal Circuit? There were several components to this question. An affirmative appellate ruling would have been applicable to the entire industry, not just the current list of defendants. Punitive damages (up to triple the actual damages would have been in play) with the appeal. And the timetable would have been reasonably well prescribed in the appeal process, not open-ended as it appears to be now.

I received the answer from an authoritative source last night; my mind can rest and I can resume my slumber. I will share however.

The amount of damages (real, punitive, and their accrued interest) would have been so large that it would have put many of the companies out of business and they could have filed bankruptcy to get out from under the decree. Yes, GERS would have received some liquid cash and probably have to take over and sell some ethanol plants, but they would never get anywhere near the judgement. And, of course, all of this would take time. A settlement however would bypass this conundrum but finding the boundary of what can and will be paid is a painfully long process.

So the path to settlement was required because the amounts of back royalties due etc. are very large and this confirms speculations to that effect. Also, since there are many parties and personalities involved (i.e. DVG) this settlement path to finding that boundary that all can accept will be very long. Expect another request for stay in February.

With my mind clear on this point and the knowledge we are likely not near anything substantive, I return to my den -- outside Whitehorse. And you think you are cold where you are? You do not know cold!
Replies:
I agree with mist but for the fact
investorpro1 on 1/5/2018 11:58:35 AM
Good assessment and good info. Still enjoying the
RussTheBus on 1/5/2018 1:35:39 PM



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[RussTheBus]

Depends on the terms of the settlements. If they're confident they'll get licensing and compensation, might be a good move to avoid the inevitable drag out on payment these companies are able to do. Sure, maybe your lump sum is bigger on settlement, but you might exit without licensing