I spoke with Phillip Kim at the Rosen Law Firm this morning. He shared with me that they now have their lead plaintiff reporting a loss on EGMI of about $1 million, which is higher than the lead plantinff on the other filed suit. He therefore expects that when the lawsuits are consolidated this summer that Rosen will take the lead.
They will be amending the lawsuit to include other parties such as auditors, officers, directors or others. They may also enlarge the time period covered by the suit. The case will likely take 2-3 years to resolve and collection will depend on insurance, personal assets or other resources available. Their fees will typically be limited to 1/3 of the recovery. He would not make any estimate of the recovery potential, but they must feel it's worth pursuing since they seemed to be excited to be taking the lead and willing to front the considerable time and expenses that will be required.
I had spoken with the SEC several weeks ago and was told they are already following EGMI, although consistent with SEC policies they will neither confirm nor deny that an investigation is in process. I suspect that filing a complaint will be redundant, but it only takes a little time to do so.
Of course, I think we're all hopeful that what's left of our management and highly-qualified professionals will be able to pull this out for everyone. With a remaining market cap of less than $3.5 million it's hard to believe there's not some salvage value worth more than that.
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