Replies to post #214514 on NeoMedia Technologies, Inc (NEOM)

[luckyrabbit]

never said they did, but they do have to be involved whether they want to or not and it is going to be very very costly.
NEOM does not have the option of just ignoring the suit and they dont have the money to retain an attorney. Hell, they couldnt even pull together a few thousand dollars to hold a SHM as they said it was too expensive.

[clawmann]

http://blog.shareholderoppression.com/2008/11/may-corporation-defend-derivative-suit.html

[Poptech]

JCG: Assisting in the defense may mean the doors stay open.

NeoMedia has demonstrated they will do whatever is requested by YA. Because of the timing, that may be in the best interests of shareholders. If you close your doors, any disgorged profits will go straight back to creditors.

The catch-22 is YA is first in line.

If YA continues to fund, I predict YA will come up with a clever way to get NeoMedia to pay for the defense. New fees, new series, new something. EDIT: Or was the new reverse split executed as preparation for the suit?

The best case scenario is YA continues to fund with the requirement that NeoMedia do nothing with the lawsuit.