Replies to post #335158 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

How would you address this seeming quandary:

Judge Bernstein has stated that it would be improper, based on a lack of funding, for him to impose the pursuit of this silly NSS recovery (I know, it isn't reasonable to think that there is one) on the Trustee and the estate. And that the shareholders should pursue such a claim independently and with their own funds.

The problem with this seems to me to be, and it is addressed by Sasser's attorney in his motion, that any recovery that the shareholders might secure would be prioritized to, or would certainly eventually be sought by, the creditors of the estate. The Trustee has given no indication at all that the estate is willing to accept the prospect that a recovery by the shareholders would inure solely to the benefit of the shareholders.

As a practical matter, I can't imagine the shareholders mounting the legal effort necessary to actually pursue the issue. And have even more trouble imagining them having any success if they did. But can the court essentially strip the creditors of their claim to any theoretical recovery by offering it up to the shareholders? He can't just leave it open to them as he has, can he? Because the way he has left it in his memorandum he has done just that.
http://viewer.zoho.com/docs/b6abXa

[big lug]

That might be simplifying things a bit. What about the public documents available through the SEC or the Reuters reports published on a regular basis. Reuters loved this stock. No where in the Reuters reports did it say this was an abvious scam that should be avoided at all cost.

shareholders in SPNG INVESTED based on an expectation of a short squeeze not on fundamentals and they are now receiving the rewards of poor due diligence.

[Hiphop08]

Patch people invested in spng because their products were on store shelves of major retailers across the nation. They were seen marketing their products on TV and in sports stadiums. The snugggie and other as seen on TV products, such as oxy clean and others were legitimate products and spng had the same business marketing model. Difference here is the greed of being publically traded and insiders seling shares. They also acquired Dicon for $4.5 million cash and that also was another reason why sharehders invested. Spng had real products on the shelves that were retailing. This company could have survived and prospered had a new management been brought in.