Replies to post #74545 on World Surveillance Group Inc (fka WSGI)

[siriuslyricher]

Pokestake, I was responding to this statement:

"I'm talking about the insurance company paying if the plaintiffs succeed in proving fraud, or if Globetel settles on the basis of having committed fraud. People think no big deal, the insurance will cover the damages. That's not true, imo"

The insurance company and plaintiffs will settle if both decide it's not worth it to go to trial, even if fraud is one of the allegations. Fraud is very difficult to prove, thus the plaintiffs have a strong incentive to settle, as appears to be the case here. And, yes, IMO, most of these suits are brought precisely because the class action lawyers know the company will settle rather than going to the time and expense of a trial.