ONP - I'm just bothered that if MW is wrong in the fraud claim, and I think the odds say they are wrong at this point (the market certainly seems to be shifting its vote that way) that there won't really be consequences for them.
What can be done? They've probably already covered the short--maybe even gone long, as they said they might. That's total crap. We don't have any sort of regulations that prevent activity like that.
You can short a stock, then yell "fire" in a crowded theater, and there is no way to undo the benefit you wrongly created for yourself, and the harm you wrongly created for others. After all, whoever yells can play reg FD and say "I am short" and "I am just expressing an opinion" and "due your own DD", thus eliminating legal responsibility. Whether or not their opinions turn out to be true, they will still make money, simply from the panic.
The question is, can we have free expression and yet still have markets that function cleanly and fairly? The profit motive is very dangerous--people will do all kinds of sleazy shit if they can make money. A line obviously needs to be drawn somewhere, that's all I'm saying.
If these guys are wrong, I think they should be held financially accountable to the shareholders who have been harmed by their actions. At a minimum, they should have to give up their short profits.
Thoughts?