Don't know if this is true (although I can most likely find info in Texas about lawsuits if I cared to), however, this was one of my points a while back. IF a company settles, there is almost always a disclosure agreement attached. Therefore, no way for shareholders to know what was settled for. Therefore, I don't see any way the company could pass along to common shareholders any funds without disclosing, being they don't have any earnings of their own. IF, the company settles with someone......where does that money go?