los: This suit isn't going to damage YA, but will damage NeoMedia. Here's how it will play out:
1. Judge orders mediation
2. YA offers a couple million to settle (up to the amount of their insurance cap)
3. YA's insurance company pays NeoMedia a couple of million (best case) and Klawonn's attorney the remainder
4. NeoMedia pays YA their portion of the settlement to catch up on their back payments
5. NeoMedia and YA admit no fault.
--YA makes a little bit of money from their own insurance. Considering they will be picking up all the attorney fees, there may not be much left.
--3 teams of attorneys all make their money.
--NeoMedia reduces debt, but only a portion of the interest expense that occurred during the lawsuit.
--Share price recovers in a couple of years and gains back 4 million in valuation.
So, the only winners are the attorneys.