Hey TJ-
According to the court docs, Landstar (Jason) alleges that back in 2009 1.5 billion shares were prepared but never issued or delivered to Hubai Chuguan because it seems Hubai never followed through with their end of the deal.
I think the proof is in the pudding as Hubai, if issued the shares in hand, would have had ample opportunity to sell those shares before the old LDSR shell went BK in 2010 or when this came back online in 2017. Yet, here we are in 2019 and the shares are still completely intact in the SS without one share being sold...
Therefore, I believe the shares to be in limbo and this lawsuit is simply a formality to move those shares out. According to the lawsuit filings, Jason has made several attempts to reach out to management of Hubai and there has been no response. So I would consider the shares completely frozen and once a judge hears the case, if the defendant doesn't show up to stake their claim with ample backup to show why they are due the shares in consideration, I would expect a favorable judgement to LDSR for clearing those shares off the books.
One thing that I found interesting and I am surprised no one is talking about is this sets a precedence with this stock if those shares are found to be issued against the share structure in error.
You know... there is a convertible note on the books for 125k issued to a company that also has a phantom past similar to this....
My point is this, just because something is issued and impacts the share structure with shares, it doesn't mean that those shares can't be wiped off the ledger for one reason or another.
Keep "Prepared but not issued" in mind and you might catch my gist. :-)
Imagine that convertible note being challenged by Jason next, could we see similar results?
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